European buyers of Indonesian palm oil - Framtiden.no · European buyers of Indonesian palm oil A research paper prepared for Friends of the Earth England, Wales and Northern Ireland,

European buyers of Indonesian palm oil

A research paper prepared for Friends of the Earth England, Wales and Northern Ireland, Milieudefensie and Svenska Naturskyddsföreningen January 2004 (updated with new trade figures in July 2005) Jan Willem van Gelder Profundo Van Duurenlaan 9 1901 KX Castricum The Netherlands Tel: +31-251-658385 Fax: +31-251-658386 E-mail: [email protected]

Contents

Introduction ..........................................................................................................1

Chapter 1 The global oil palm sector ..............................................................2

1.1 History of the cultivation of oil palms.....................................................2

1.2 The global oil palm production chain .....................................................3 1.2.1 Oil palm plantations....................................................................................4 1.2.2 Crude palm oil mills ....................................................................................5 1.2.3 Palm kernel crushing plants .......................................................................6 1.2.4 Palm oil and palm kernel oil refineries ........................................................7 1.2.5 Manufacturers of margarine, shortenings and fats......................................9 1.2.6 Oleochemical industries ...........................................................................10 1.2.7 Final processing industries .......................................................................13 1.3 Global palm oil production....................................................................14

1.4 Global usage of oil palm products........................................................16 1.4.1 Global palm oil usage...............................................................................16 1.4.2 Global palm kernel oil usage ....................................................................17 1.4.3 Global usage of edible oils .......................................................................18 1.4.4 Global palm kernel meal usage ................................................................18 1.4.5 Global usage of oil meals .........................................................................19 1.5 World market prices for oil palm products...........................................20

Chapter 2 The Indonesian oil palm sector ....................................................21

2.1 Historical development of the Indonesian oil palm sector..................21 2.1.1 1848-1945: Colonial development............................................................21 2.1.2 1945-1968: Post-colonial decline .............................................................21 2.1.3 1968-1985: First expansion phase ...........................................................21 2.1.4 1985-1998: Second expansion phase ......................................................22 2.1.5 1998-2002: Investment pause ..................................................................25 2.1.6 Since 2002: Renewed expansion .............................................................30 2.2 Export markets for the Indonesian oil palm sector..............................32 2.2.1 Introduction ..............................................................................................32 2.2.2 Palm oil export markets............................................................................32 2.2.3 Palm kernel oil export markets .................................................................33 2.2.4 Palm kernel meal export markets .............................................................34 2.3 Business groups in the Indonesian oil palm sector ............................34 2.3.1 Oil palm plantations and CPO mills ..........................................................34 2.3.2 Palm kernel crushing plants .....................................................................41 2.3.3 Palm oil and palm kernel oil refineries ......................................................41 2.3.4 Manufacturers of margarine, shortenings and fats....................................44

2.3.5 Oleochemical companies .........................................................................45 2.3.6 Ports, storage and transport companies...................................................46

Chapter 3 The European Union market for oil palm products ....................49

3.1 Usage of oil palm products in the European Union.............................49 3.1.1 EU palm oil imports ..................................................................................49 3.1.2 EU palm kernel oil imports .......................................................................50 3.1.3 Edible oils usage in the European Union..................................................51 3.1.4 EU palm kernel meal imports ...................................................................52 3.2 Sectors in the EU oil palm production chain........................................53 3.2.1 International edible oil trading sector ........................................................53 3.2.2 Edible oil transport and storage sector .....................................................54 3.2.3 Oilseed crushing and refining industry......................................................54 3.2.4 Oil packing sector.....................................................................................54 3.2.5 Margarine and spreads industry ...............................................................55 3.2.6 Biscuit, chocolate and confectionery industry ...........................................55 3.2.7 Snacks, chips and crisps industry.............................................................55 3.2.8 Soap, detergents and cosmetics industries ..............................................56

Chapter 4 The market for oil palm products in the Netherlands.................57

4.1 Import and export of oil palm products ................................................57 4.1.1 Palm oil import and export figures ............................................................57 4.1.2 PKO import and export figures .................................................................58 4.1.3 PKM import and export figures .................................................................59 4.1.4 International edible oil trading companies.................................................60 4.1.5 Transport and storage companies............................................................64 4.2 Edible oil refining ...................................................................................67 4.2.1 Production figures ....................................................................................67 4.2.2 Refining companies..................................................................................67 4.3 Margarine, oil, sauces and food ingredients........................................70 4.3.1 Production figures ....................................................................................70 4.3.2 Producers of margarine, spreads and fats................................................71 4.3.3 Producers of mayonnaise and sauces......................................................75 4.3.4 Edible oils and fats packers and traders...................................................78 4.4 Biscuits, cakes and pastry ....................................................................81 4.4.1 Production figures ....................................................................................81 4.4.2 Producers of biscuits................................................................................81 4.4.3 Producers of cakes and pastry .................................................................82 4.5 Confectionery and ice cream ................................................................85 4.5.1 Production figures ....................................................................................85 4.5.2 Producers of chocolate confectionery.......................................................85 4.5.3 Producers of sugar confectionery.............................................................88

4.5.4 Producers of ice cream ............................................................................89 4.6 Snacks, crisps and chips.......................................................................90 4.6.1 Production figures ....................................................................................90 4.6.2 Producers of nuts, crisps, popcorn and savoury snacks ...........................90 4.6.3 Producers of savoury biscuits...................................................................92 4.6.4 Producers of meat snacks........................................................................94 4.6.5 Producers of pre-fried chips .....................................................................96 4.7 Fresh prepared foods ............................................................................99 4.7.1 Production figures ....................................................................................99 4.7.2 Producers of fresh prepared foods ...........................................................99 4.8 Other food products.............................................................................100 4.8.1 Producers of coffee whitener..................................................................100 4.9 Soap, cosmetics and detergents.........................................................101 4.9.1 Production figures ..................................................................................101 4.9.2 Oleochemical companies .......................................................................101 4.9.3 Traders in oleochemical ingredients .......................................................102 4.9.4 Producers of cosmetics and personal care products ..............................103 4.9.5 Producers of detergents and household care products...........................105 4.10 Animal feed...........................................................................................107 4.10.1 Production figures ................................................................................107 4.10.2 Producers of animal feed products .......................................................108 4.11 Financial institutions ...........................................................................108 4.11.1 Private commercial and investment banks............................................108 4.11.2 Foreign development banks .................................................................118

Chapter 5 The market for oil palm products in Sweden ............................119

5.1 Import of oil palm products .................................................................119 5.1.1 Palm oil import figures............................................................................119 5.1.2 PKO import figures.................................................................................119 5.1.3 PKM import figures.................................................................................119 5.1.4 International edible oil trading companies...............................................120 5.1.5 Transport and storage companies..........................................................120 5.2 Edible oil refining .................................................................................121 5.2.1 Refining companies................................................................................121 5.3 Margarine, oil, sauces and food ingredients......................................121 5.3.1 Production figures ..................................................................................121 5.3.2 Producers of margarine, spreads and fats..............................................121 5.3.3 Producers of food ingredients.................................................................124 5.3.4 Producers of soup and sauces ...............................................................124 5.4 Biscuits, cakes and pastry ..................................................................126 5.4.1 Production figures ..................................................................................126

5.4.2 Producers of biscuits..............................................................................126 5.4.3 Producers of cakes and pastry ...............................................................128 5.5 Confectionery and ice cream ..............................................................129 5.5.1 Production figures ..................................................................................129 5.5.2 Producers of chocolate confectionery.....................................................130 5.5.3 Producers of sugar confectionery...........................................................131 5.5.4 Producers of ice cream ..........................................................................131 5.6 Snacks, crisps and chips.....................................................................133 5.6.1 Production figures ..................................................................................133 5.6.2 Producers of nuts, crisps, popcorn and savoury snacks .........................133 5.6.3 Producers of savoury biscuits.................................................................134 5.6.4 Producers of meat snacks......................................................................135 5.6.5 Producers of pre-fried chips ...................................................................136 5.7 Fresh prepared foods ..........................................................................137 5.7.1 Production figures ..................................................................................137 5.7.2 Producers of fresh prepared foods .........................................................137 5.8 Other food products.............................................................................139 5.8.1 Producers of baby food ..........................................................................139 5.9 Soap, cosmetics and detergents.........................................................140 5.9.1 Production figures ..................................................................................140 5.9.2 Producers of cosmetics and personal care products ..............................140 5.9.3 Producers of detergents and household care products...........................144 5.10 Animal feed...........................................................................................145 5.10.1 Production figures ................................................................................145 5.10.2 Producers of animal feed products .......................................................145

Chapter 6 The market for oil palm products in the United Kingdom........146

6.1 Import of oil palm products .................................................................146 6.1.1 Palm oil import figures............................................................................146 6.1.2 PKO import figures.................................................................................146 6.1.3 PKM import figures.................................................................................147 6.1.4 International edible oil trading companies...............................................147 6.1.5 Transport and storage companies..........................................................151 6.2 Edible oil refining .................................................................................154 6.2.1 Production figures ..................................................................................154 6.2.2 Refining companies................................................................................155 6.3 Margarine, oil, sauces and food ingredients......................................157 6.3.1 Production figures ..................................................................................157 6.3.2 Producers of margarine, spreads and fats..............................................158 6.3.3 Producers of food ingredients.................................................................161 6.3.4 Producers of soup and sauces ...............................................................163

6.3.5 Edible oils and fats packers and traders.................................................165 6.4 Biscuits, cakes and pastry ..................................................................166 6.4.1 Production figures ..................................................................................166 6.4.2 Producers of biscuits..............................................................................166 6.4.3 Producers of cakes and pastry ...............................................................168 6.5 Confectionery and ice cream ..............................................................170 6.5.1 Production figures ..................................................................................170 6.5.2 Producers of chocolate confectionery.....................................................170 6.5.3 Producers of sugar confectionery...........................................................172 6.5.4 Producers of ice cream ..........................................................................173 6.6 Snacks, crisps and chips.....................................................................175 6.6.1 Production figures ..................................................................................175 6.6.2 Producers of nuts, crisps, popcorn and savoury snacks .........................176 6.6.3 Producers of savoury biscuits.................................................................177 6.6.4 Producers of meat snacks......................................................................178 6.6.5 Producers of pre-fried chips ...................................................................179 6.7 Fresh prepared foods ..........................................................................180 6.7.1 Production figures ..................................................................................180 6.7.2 Producers of fresh prepared foods .........................................................181 6.8 Other food products.............................................................................184 6.8.1 Producers of baby food ..........................................................................184 6.8.2 Producers of pasta .................................................................................184 6.9 Soap, cosmetics and detergents.........................................................185 6.9.1 Production figures ..................................................................................185 6.9.2 Producers of oleochemical ingredients...................................................185 6.9.3 Producers of cosmetics and personal care products ..............................186 6.9.4 Producers of detergents and household care products...........................190 6.10 Animal feed...........................................................................................192 6.10.1 Production figures ................................................................................192 6.10.2 Producers of animal feed products .......................................................192 6.11 Financial institutions ...........................................................................193 6.11.1 Private commercial and investment banks............................................193 6.11.2 Fund managers ....................................................................................199

Annex 1 References ...................................................................................201

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Introduction

Indonesia's 100 million hectares of forests represent ten percent of the world's remaining tropical forest cover. Today over 70% of Indonesia's original "frontier" forest (including original ecological features) has been lost, and the country currently loses around one million hectares of forest each year - around 1% of its remaining forests. Indonesia is home to 10% of plant, 12% of mammal, 16% of reptile and 17% of bird species. Indonesia has the world's longest list of species threatened with extinction, including the Sumatran tiger, Asian elephant, Sumatran and Javan rhino, clouded leopard, sunbear and orang-utan.1 The deforestation of the Indonesian forests has various causes, but it is generally acknowledged that the rapid expansion of the Indonesian oil palm sector is playing a major role. This became particularly apparent during the large forest fires of 1997/98, which produced a thick smog that spread over South East Asia. Independent researchers have calculated that three million hectares of lowland forest and 1.5 million hectares of peat and swamp forest were burnt in that year. Palm oil and logging companies were responsible for about two-thirds of the fires.2 The aim of this report is to identify and describe the main companies in the United Kingdom, the Netherlands and Sweden active in importing, trading, refining and processing oil palm products. As far as possible the business links of these companies with Indonesian oil palm groups are also identified. Furthermore, the financial institutions from these countries which are involved in financing the Indonesian oil palm sector are also identified and described. After a general description of the global oil palm production chain in Chapter 1, the historic development of the oil palm sector in Indonesia is described in Chapter 2. The following chapters describe the palm oil markets of the three countries mentioned, as well as the financial institutions from these countries which are involved in financing the Indonesian oil palm sector: the Netherlands (Chapter 4), Sweden (Chapter 5) and the United Kingdom (Chapter 6). Update July 2005 In July 2005 a number of important tables with trade were updated with data for 2003 and 2004. Acknowledgements The author of this report wishes to thank Ed Matthew, Robin Webster, Simon McRae and other staff at Friends of the Earth England, Wales and Northern Ireland for commissioning this report. Thanks to Maria Rydlund of Svenska Naturskyddsföreningen for commissioning the chapter on Sweden and to Myrthe Verweij of Milieudefensie for commissioning some additional research on financial institutions. Acknowledgements to Eric Wakker of AIDEnvironment for his valuable inputs. Thanks to Irene de Bruin (AIDEnvironment) for making the updated tables in July 2005.

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Chapter 1 The global oil palm sector

1.1 History of the cultivation of oil palms

The oil palm (Elaeis guineensis) originates from the coastal regions of West Africa, where it was mainly growing along rivers. Palm oil is presumed to have formed part of the diet in large parts of Africa well before our written history began. Evidence of palm oil has been found at archaeological digs in Egypt, dating from 3,000 BC, which seems to indicate that it was already traded on the African continent at that time. The Portuguese discovered the crop during their expeditions to West Africa in the 15th century, and palm oil later became a basic part of the food on board of slave ships. Small-scale growers in Central and West Africa began to export their products to Liverpool and Marseilles in the late 18th century. The industrial revolution created a much larger demand for palm oil, which was used at the time to make candles and as a lubricant for machines. A big boost to the trade was given by the anti-slavery legislation in the first part of the 19th century. The carrying of slaves from West Africa to North & South America and the Caribbean had been a lucrative trade for British shipping, and they needed an alternative. The trade in palm oil increased by leaps and bounds. Barrels were put together in Africa, taken to the villages, filled with oil and paddled in canoes to the port. Towards the end of the 19th century the first plantations were established by the colonial powers in Africa (United Kingdom, Belgium) to increase output.3

Historical development of global oil palm production

0

5,000

10,000

15,000

20,000

25,000

30,000

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Years

Pro

duct

ion

(1,0

00 M

T)

Nigeria Malaysia Indonesia Other countries

Figure 1. Historical development of the global palm oil production 1970-2004

At the beginning of the 20th century the first oil palm plantations were established in Asia. The Dutch colonial rulers started commercial exploitation in Sumatra after 1910 and British

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traders established plantations in Malaysia in the 1920s. Right from the beginning it was used as an export crop in these countries, so that quality control and bulk handling systems were initiated. Growth was slow, however, until the late 1950s, when Malaysia decided to diversify significantly away from rubber, the principal export crop. Declining world rubber prices contributed to this decision, but also the need to settle landless people and the ambition to open up forest areas to fight communist movements. A principal agent of this development was the government Federal Land Development Agency (FELDA) which undertook forest clearance and the settling of smallholders.4 As shown in Figure 1, Malaysia surpassed Nigeria as the most important palm oil producing country in the world in the early-1970s. At present Malaysia accounts for half of global palm oil production. At the end of the 1960s Indonesia started to follow the Malaysian example, but only since the mid-1980s has the sector really expanded. At the moment Indonesian oil palm production is approaching that of Malaysia. As oil palm production in Africa is largely stagnating and the oil palm sector in Latin America is still underdeveloped, the two Asian countries dominate world production at present (see Table 3). 5 The continuing expansion of the Indonesian oil palm sector will be described in more detail in Chapter 2.

1.2 The global oil palm production chain

At present the production and usage of palm oil is no longer confined to a specific geographic region or a limited number of end-products. Large quantities of palm oil are consumed all over the world, as ingredients of numerous products manufactured by a large number of industries.

Figure 2. Overview of the oil palm production chain

Oil palm plantation

Fresh fruit bunches

CPO mill Crude Palm Oil (CPO) Palm kernels

Refinery

Refined, Bleached and Deodorized Palm Oil (RBDPO)

Refinery

Crushing plant

Palm Kernel Meal (PKM)

Crude Palm Kernel Oil (PKO)

Oleochemical plant Refinery

RBD PKO

Animal feed industry

Fatty acids, fatty alcohols, esters, glycerine, a.o.

RBD Olein RBD Stearin

Food industry Detergent and cosmetics industry Chemical and other industries

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To supply oil palm and its derived ingredients to these industries and their customers, an integrated, global oil palm production chain has developed over the years. Figure 2 gives a schematic overview of this global oil palm production chain, from the plantation to the end-consumer. The principal stages in the global oil palm production chain, as shown in Figure 2, will be described in the following paragraphs.

1.2.1 Oil palm plantations

The oil palm requires a wet tropical climate with temperatures between 24 and 32 oC throughout the year. This means its growth is generally limited to latitudes of approximately ten degrees north and south of the equator, at altitudes below 700 meters.6 The oil palm tree reaches maturity in three to four years, when it is about 2 meters high. Thereafter it continues to grow by another 70 centimetres per year and can reach a height of more than 10 meters. Its economic life continues until it reaches the age of 20 to 25 years, with peak production between the sixth and tenth year. 7

Figure 3. Mature oil palm trees

When the palm tree is mature, each year large bunches of palm fruits (the size of small plums) grow in the armpits of the palm leaves. A so-called Fresh Fruit Bunch (FFB) can contain from 1,000 to 3,000 individual fruits, together weighing 10 to 20 kilograms. Every oil palm tree produces several bunches per year. The fruit yield per hectare therefore is enormous: 10 to 35 tonnes per hectare. 8

Figure 4. Fresh fruit bunch

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1.2.2 Crude palm oil mills

After harvesting, the Fresh Fruit Bunches (FFB) have to be processed within 24 hours, to avoid the rapid build-up of free fatty acids in the harvested fruit. This means that the processing mills have to be located close to the production sites, with every cluster of oil palm plantations needing its own crude palm oil (CPO) mill.

Figure 5. The oil palm fruit

The oil palm fruit looks like a plum. The outer fleshy mesocarp gives the palm oil, while the kernel (which is inside a hard shell) gives palm kernel oil and palm kernel meal. In the CPO mill, the flesh of the palm fruit is sterilised and mechanically separated from the kernel. The kernel is shipped to a crushing plant, and the fruit is mechanically pressed to extract the Crude Palm Oil (CPO), a yellow-red liquid. The CPO then is clarified and purified.9

Figure 6. Processes in the CPO mill

The average recoverable palm oil content from fresh fruit bunches is about 20 percent, so the CPO yield per hectare is about 2 to 7 tonnes. In Indonesia the average CPO yield in recent years has been 3.2 tonnes per hectare. This is much higher than any other oil crop in the world, the average oil yield for soybeans is only 0.5 tonnes per hectare.10 The residues of the FFB (70% of the gross yield) are used as fuel and for mulching. 11

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Figure 7. CPO mill

1.2.3 Palm kernel crushing plants

The palm kernels are being crushed in crushing plants, which can be located in either in producer or consumer countries. These can be dedicated palm kernel crushing plants, but palm kernels can also be crushed in general oilseed crushing plants which also process soybeans and other oilseeds. 12 The crushing process yields two products: 45% palm kernel oil (PKO) and 55% palm kernel meal (PKM). One hectare of oil palms therefore yields three different basic products: CPO (3.2 tonnes per hectare), PKO (0.34 tonnes per hectare), and PKM (0.42 tonnes per hectare). These figures are recent yield-figures for the Indonesian palm oil sector.13

Figure 8. Palm Kernel Oil and Crude Palm Oil

The chemical composition of palm kernel oil is very different from the composition of palm oil. Palm oil contains mainly palmitic and oleic acids and is about 50% saturated, while palm kernel oil contains mainly lauric and myristic acids and is around 82% saturated (see Table 1). The high content of lauric acid gives palm kernel oil its sharp melting properties, meaning hardness at room temperature combined with a low melting point (just above room temperature). This makes palm kernel oil very well suited as shortening in pastry and to replace cacao butter. Palm kernel oil does not become rancid quickly and can be stored at

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room temperature, ensuring that pastry and confectionery have a longer shelf life. But once consumed, it melts in your mouth directly. Only palm kernel oil and coconut oil have such a high content of lauric acid - other edible oils usually have less than 1%. For this reason palm kernel oil and coconut oil, the lauric oils, are generally more expensive than other edible oils.14

Table 1 Composition of palm oil and palm kernel oil 15

Fatty acid C-atoms Saturation Palm oil Palm kernel oil

Caprylic acid 8 Saturated 0% 1%

Capric acid 10 Saturated 0% 3%

Lauric acid 12 Saturated 0% 51%

Myristic acid 14 Saturated 1% 18%

Palmitic acid 16 Saturated 43% 9%

Stearic acid 18 Saturated 5% 2%

Oleic acid 18 Mono-unsaturated 39% 15%

Linoleic acid 18 Poly-unsaturated 11% 0%

Linolenic acid 18 Poly-unsaturated 0% 1%

Total 100% 100%

1.2.4 Palm oil and palm kernel oil refineries

Most of the crude palm oil as well as most of the crude palm kernel oil is processed further in refineries, which can be located either in producer or consumer countries. The primary processes undertaken in a refinery are:16 • Neutralisation (also called degumming): Crude oil must be neutralised to remove any

'free' fatty acids (those which may have broken away from the triglyceride molecule) which, with time, would otherwise react with oxygen and cause the oil to develop a rancid taste. The neutralised oil is washed and dried thoroughly as a high moisture content would also cause deterioration of the oil;

• Bleaching: Colour and impurities are removed by bleaching the oil with a special absorbent earth. The earth is carefully filtered out to leave the oil clear;

• Deodorizing: Deodorisation removes any smell and taste in the oil. This is achieved by blowing steam though the heated oil and a vacuum draws off the steam along with the smell and taste.

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Figure 9. Processes in a palm oil refinery

Through these processes, CPO is processed into refined, bleached and deodorized palm oil (RBDPO). RBDPO is a light yellow liquid or semi-solid at room temperature, melting to a clear yellow liquid on slightly heating. RBDPO is used as an industrial frying oil to produce chips, crisps, instant noodles, and other snack foods. It is also used to produce margarines, shortenings, ice cream, condensed milk, vanaspati, soap and other products.

Figure 10. RBD palm oil

A secondary process undertaken in most palm oil refineries is the fractionating of refined palm oil. This means that the palm oil is cooled under controlled conditions, separating the high melting point triglycerides in the oil from the low melting point triglycerides. This yields two separate products:17 • RBD palm olein: a clear yellow liquid at room temperature; • RBD palm stearin: a white solid at room temperature, melting to a clear yellow liquid on

heating.

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The chemical composition of both products is comparable to that of palm oil (see Table 1), but olein contains more oleic acid and less palmitic acid, while stearin contains more palmitic acid and less oleic and linoleic acid. 18

Figure 11. RBD palm olein (left) and RBD palm stearin (right)

Both fractions are used for different end-products:19 • In its pure form, RBD palm olein is sold as cooking oil. RBD palm olein is also used in the

manufacture of margarine and shortenings and in industrial frying of processed foods like potato chips, chips, instant noodles and other snack foods.

• RBD palm stearin is used in for margarine and shortenings and as a source for producing specialty fats for coating in confectionery. It's also used in the soap and oleochemical industries.

The refining of crude palm kernel oil follows the same pattern. First crude palm kernel oil is processed into refined, bleached and deodorized palm kernel oil (RBDPKO), which is used mainly in soap, detergents and cosmetics as well as in margarine and shortenings. Part of the RBD palm kernel oil is fractionated into a solid and a liquid component. RBD palm kernel olein is a light coloured oil. It can be used as cooking oil or as a base oil for the manufacturing of margarine. RBD palm kernel olein has excellent keeping qualities and is therefore often used in the commercial frying of nuts, roasting of popcorns, candy making and cracker spraying. The hydrogenated product is also used to replace milk fat in ice cream making. Its industrial application includes the production of soaps, shampoo, detergents, cosmetics and lubricants. 20

1.2.5 Manufacturers of margarine, shortenings and fats

Manufacturers of margarine and speciality fats further process refined palm oil and refined palm kernel oil, to produce margarine, frying fats and spreads for the consumer market and industrial margarines, frying fats, shortenings, cocoa butter substitutes, and other food ingredients for the bakery, chocolate, confectionery, ice-cream, snacks and biscuits industries. Often these type of companies are integrated with edible oil refineries, which makes it difficult to make clear distinctions. Manufacturers of margarine and speciality fats modify and combine various kinds of refined edible oils, to achieve an oil- or fat-mixture with the desired texture, consistency and other physical and chemical properties. These modifications are done using various techniques:21 • Fractionation: see paragraph 1.2.4; • Hydrogenation: Adding hydrogen to unsaturated fatty acids to create saturated fats with

a higher melting point. This process is often called hardening. • Rearrangement: Combining two different oils to produce a fat with different melting

characteristics.

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With these techniques specific oil- or fat-blends can be created, which eventually can be mixed with oil-soluble ingredients such as vitamins, colours, flavour and emulsifiers. Some of these oil- or fat-blends are used as ingredients in all kinds of food industries. Other oil- or fat-blends are mixed with water (in which whey, brine, milk proteins and starches are dissolved) at temperatures of 50°C - 60°C. After pasteurisation, the blend is carefully chilled under constant agitation to form a water-in-oil emulsion. This process generates various types of margarines and spreads, sold both to consumers and to other food industries.

Figure 12. The margarine production process

1.2.6 Oleochemical industries

The oleochemical industry uses edible oils to produce oleochemicals, such as fatty acids, fatty alcohols, glycerine and methylesters. Oleochemicals are used in the manufacture of such products as foods and specialty fats, soaps and detergents, cosmetics and personal care products, lubricants and greases, drying oil, surface coatings and polymers, and biofuels (see Table 2). 22 Similar chemicals may be synthesized from crude oil, but then they are classified as petrochemicals. The advantages of using oleochemicals over using comparable petrochemicals are:

• oleochemicals are derived from renewable resources; • oleochemicals are more readily biodegradable; • the production of petrochemicals uses more energy and causes greater emission of

pollutants.

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Table 2 Applications of oleochemicals 23

Industry/Product Uses

Leather Softening, dressing, polishing and treating agents

Metal Work & Foundry Cutting oils, coolants, buffing and polishing compounds

Mining Surface-active agents for froth floatation of ore and oil-well drilling

Rubber Vulcanising agents, softeners and mould-release agents

Electronics Insulation and special-purpose plastic components

Lubricants and Hydraulic Fluids

General and specialty industrial lubricants and biodegradable base oils, hydraulic fluids

Paints and Coatings Alkyd and other resins, drying oils, varnishes and other protective coatings

Printing and Paper Re-cycling

Printing inks, paper coatings, photographic printing, de-inking surfactants

Plastics Stabilizers, plasticizers, mould-release agents, lubricants, anti-static agents, antifogging aids, polymerisation emulsifiers

Biofuels Methyl esters and alcohols

Waxes Ingredients in waxes and polishes

Soaps & Detergents Industrial and domestic products, specialty surfactants

Health & Personal Care Culture media, tabletting aids, soaps, shampoos, creams, lotions

Food Emulsifiers, confectionery and specialty fats for bread, cakes, pastries, margarine, ice-cream and other food products

Animal Feeds Nutritional supplements

Until 1985 the oleochemical industry was mainly located in Northern America, Japan and Europe and the main edible oils used were coconut oil (for C12 and C14 fatty acids) and tallow (for C16 and C18 fatty acids). Since then, palm kernel oil (for C12 and C14 fatty acids) and palm oil (for C16 and C18 fatty acids) have become the main feedstocks for the global oleochemical industry. This is caused by the limited growth in global tallow and coconut oil production, lower costs of oil palm products and the convenience in using two products from the same supplier. At the same time the strongest growth in basic oleochemical production capacity took place in Malaysia and - to a lesser extent - Indonesia and other ASEAN-countries. In 2000 the global production volume of basic oleochemicals amounted to 6.3 million tons of which already 2.3 million tons (36%) were produced in the ASEAN-countries.24 It is generally estimated that 14% of global edible oil production is processed by the oleochemical industry.25 For palm oil and especially palm kernel oil this percentage might be much higher. Unlike refineries, oleochemical plants break down palm oil and palm kernel oil into their chemical components. All edible oils and fats are composed of molecules called triacylglycerols or triglycerides. These molecules consist of a glycerol molecule to which are attached three fatty acids, usually of different types. The primary process in the oleochemical industry therefore is to break up the triacylglycerols in separate fatty acids as well as glycerine (see Figure 13). 26

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Figure 13. Basic oleochemicals (bold) and downstream oleochemicals and derivatives (italics)

Some additional information regarding the uses of these different types of oleochemicals: • Glycerine: Glycerine is used in pharmaceuticals, perfumery, food emulsifiers, cigarettes,

alkyd resins, cellophane, dynamite, ester gums, toothpaste, polyurethane and polyols.

Splitting

Glycerol / Glycerine Crude Fatty Acids

Distilled Fatty Methyl Esters

Hydrogenation

Fatty Alcohols

Amidation Sulphonation

Ethoxylation

Fatty Alcohol Amide Ethoxylate

Fatty Alcohol Amide

Methanolysis

Methyl Ester Sulfonate

Distilled Fatty

Esters

Esterification

Evaporation, Purification or Bleaching

Fractionation Distillation

Esterification

Hydrogenation

Distillation

Hydrogenated Fatty Acids

Distillation Distillation

Distilled Fractionated Fatty Esters

Fractionated Fatty Acids C12, 14, 16, 18

Distilled Fatty Acids

Distilled, Hydrogenated Fatty Acids

Crude Fatty Methyl Esters

Distillation

Neutralization

Soap

Fractionation

Fractionated Fatty Alcohols

Palm Oil / Palm Kernel Oil

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• Fatty acids: Fatty acids are used in the cosmetics industry on a large scale. Fatty acids

derived from palm kernel oil are often used in hair cosmetics, while fatty acids derived from palm oil are often used in skin cosmetics (see Table 1).27

• Fatty alcohols: Fatty alcohols are used on a large scale to produce surfactants. A

surfactant is a material that can greatly reduce the surface tension of water when used in very low concentrations. Because of this property surfactants are used as detergents in laundry and household cleaning products, as foaming agents in the production of plastics or as emulsifier in the production of cosmetics, margarine and other food products. The best-known surfactant is ordinary soap, which is always made from vegetable oils. Palm kernel oil is most commonly used and to a lesser extent coconut oil. (To produce normal soap, these oils do not have to be processed in an oleochemical way).28 But besides soap there are several other types of surfactants. The intermediate products used in the production of 80% of all surfactants (except for soap) are fatty alcohols, which can be produced from lauric oils (palm kernel oil or coconut oil) or from mineral oil. Total global surfactant capacity using oleochemical feedstocks is about 1.01 million metric tons, almost equal to the 1.10 million metric tons capacity using petrochemical feedstocks. 29

1.2.7 Final processing industries

Oil palm products are being used to process a broad range of final products in a number of industrial sectors: 30 • Food industry

Palm oil is valued by the food industry for its competitive price compared to other oils and fats, its nutritional advantages over other fats and the fact that it contains hardly any cholesterol. Ingredients derived from palm oil are used in margarine, frying fat, shortenings, mayonnaise, sauces, salad oil, potato chips, crisps, instant noodles, snacks, biscuits, bread, cakes, pastry, chocolate, confectionaries, ice cream, coffee whitener and many other food products. Palm kernel oil and its hydrogenated and fractionated products are widely used either alone or in blends with other oils for biscuit doughs and filling creams, cake icings, ice-cream, imitation whipping cream, coffee whiteners, substitute chocolate and other coatings, sharp-melting margarines, et cetera. 31 Oleochemical ingredients derived from palm oil and palm kernel oil are used on as emulsifiers for the production of margarine and other food products.

• Soap and detergents industry

Lauric oils (palm kernel oil and coconut oil) are indispensable in soap making. Good soap must contain at least 15% lauric oils for quick lathering, while soap made for use in sea water is based on virtually 100% lauric oils. Lauric oils also confer hardness, solubility and a feel of quality to soap. Coconut oil has been the traditional fat for this application but is increasingly substituted by palm kernel oil. 32 Palm oil is still used to make soap as well, but on a declining scale. Oleochemical ingredients derived from palm oil and palm kernel oil are used on a large scale for the production of detergents, personal care products and household care products.

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• Cosmetics industry

Palm oil has the advantage of being more easily absorbed by the skin than other oils, so it is found in beauty creams, lotions, shampoo, lipsticks, et cetera. Oleochemical ingredients derived from palm oil and palm kernel oil are used on a large scale for the production of cosmetics.

• Leather and textile industry

Palm oil is used for greasing and softening leather. In the textile industry it is used as a lubricant, since it has the advantage of being easier to remove than mineral oil. Oleochemical ingredients are also used in various applications.

• Metal industry

Palm oil is used on a large scale for cold rolling of thin metal sheet, and sharpening and polishing special steels.

• Chemical industry

Oleochemical ingredients derived from palm oil and palm kernel oil are used for the production of plasticizers and as additives to plastics, rubber and textiles. They are also used in the production of paint and surface coatings.

• Compound feed industry

All palm kernel meal is processed and blended into compound feed for the livestock industry. Its high carotene content also makes palm oil an inexpensive source of vitamins in animal feed.

• Other industries

Palm oil is also used as a substrate for cultivating yeast, as a lubricant additive, as a component in ski wax and printing ink, to make candles, et cetera. Palm kernel oil is an ingredient for insecticides and fungicides, hydraulic brake fluids, and substances used in the electronics industry.

1.3 Global palm oil production

Commercial cultivation of oil palms is only possible in low-land areas near the equator, i.e. in Northern Latin America, Central Africa and South Asia. Among these regions, the position of South East Asia has been very dominant for the past decades. Malaysia and Indonesia together account for a staggering 84% of global output and Thailand and Papua New Guinea add another 3%. Countries in Africa (Nigeria, Ivory Coast) and Latin America (Colombia, Ecuador) play a far more modest role as shown in Table 3.

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Table 3 Crude Palm Oil (CPO) production by country (in 1,000 MT) 33

Country 1995 1998 1999 2000 2001 2002 Growth Share

Malaysia 7,811 8,315 10,553 10,840 11,804 11,908 52% 48%

Indonesia 4,220 5,361 6,250 7,050 8,030 9,020 114% 36%

Nigeria 660 690 720 740 770 775 17% 3%

Thailand 354 475 560 525 620 590 67% 2%

Colombia 388 424 501 524 548 528 36% 2%

Papua New Guinea 223 210 264 336 329 318 43% 1%

Ivory Coast 285 269 264 278 220 240 -16% 1%

Ecuador 180 199 263 222 201 217 21% 1%

Others 1,089 1,211 1,250 1,359 1,399 1,437 32% 6%

World total 15,210 17,154 20,625 21,874 23,921 25,033 65% 100%

Global palm oil production has increased by as much as 65% since 1995. But Indonesian palm oil output is growing even stronger (114%) and its global market share has increased from 28% to 36% in the past seven years. Malaysia, on the other hand, has seen its market share gradually decreasing in the past seven years from 51% to 48%.

Figure 14. Oil palm plantation

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1.4 Global usage of oil palm products

1.4.1 Global palm oil usage

Global palm oil usage has increased by 70% since 1995. Figures on the main palm oil consuming countries and regions are listed in Table 4. It is important to note that the usage figures in this table refer to the countries and regions in which the palm oil processing industries are located. The products of these processing industries (margarine, confectionery, soap, cosmetics, etcetera) can of course be exported to end-users in other countries and regions. The actual geographical spread of the end-usage of palm oil therefore will differ somewhat from these figures. As shown in Table 4, most of the major oil palm growing countries (Indonesia, Malaysia, Nigeria, Thailand, Colombia) are important palm oil users as well. But their market share is declining as their growth in usage is slower than the global average. Despite a usage growth of 36% in the past seven years, Indonesia has lost its position as the largest oil palm market in the world and has fallen back to third place behind India and the European Union. With a growth in usage of 369% over the past seven years, India has overtaken Indonesia as the largest oil palm market in the world and is now accounting for 14% of global usage. On its own, India accounts for 27% of global usage growth over the past seven years. However, this growth was mostly achieved in the late-1990s; since 2000 the growth of the Indian market has stagnated.

Table 4 Palm oil usage by country/region (in 1,000 MT) 34

Country/region 1995 2000 2001 2002 2003 2004 Growth Share

EU 1,689 2,457 2,962 3,352 3,525 3,815 126% 13%

China 1,294 1,618 2,165 2,650 3,278 3,746 189% 13%

India 757 3,623 3,620 3,550 4,152 3,400 349% 11%

Indonesia 2,160 2,962 2,877 3,027 3,150 3,313 53% 11%

Malaysia 1,098 1,495 1,474 1,501 1,568 1,782 62% 6%

Pakistan 1,157 1,117 1,240 1,350 1,331 1,405 21% 5%

Nigeria 725 845 911 954 975 975 34% 3%

Thailand 414 484 504 508 501 597 44% 2%

Egypt 400 448 464 476 628 643 61% 2%

Turkey 190 209 261 274 358 636 235% 2%

Bangladesh 91 194 376 430 470 592 551% 2%

Former Soviet Union 61 202 365 459 516 549 800% 2%

Japan 35 371 392 415 429 465 1229% 2%

Colombia 378 424 448 451 446 442 17% 1%

Other countries 3,946 763 810 823 861 929 -76% 3%

Total 14,710 21,676 23,789 25,606 28,250 29,899 103% 100%

The opposite is the case for China and also for the countries in the Former Soviet Union and Bangladesh: a spectacular growth has occurred especially since 2000. China now accounts for 10% of global palm oil usage and is the fourth largest market in the world.

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A much more gradual growth was apparent in the second largest palm oil market in the world, the European Union. Growth in usage in the EU was nevertheless higher than the global average, resulting in an increase in global market share from 11% to 13% in the past seven years.

1.4.2 Global palm kernel oil usage

Global palm kernel oil (PKO) usage has increased by 59% since 1995, which is a lower growth rate than that of global palm oil usage (70%). In volume terms, global PKO usage decreased from 13% of global palm oil usage to 12%, because the extraction rate of palm oil per FFB is increasing while the PKO extraction rate is more constant. The relative value of global PKO usage compared with global CPO usage is generally somewhat higher, as PKO prices are usually above CPO prices. Figures on the main PKO consuming countries and regions are listed in Table 5. Again, it is important to note that the usage figures in this table refer to the countries and regions in which the oil palm processing industries are located. End-usage could be located elsewhere as the products of these processing industries can be exported to end-users in other countries and regions.

Table 5 Palm kernel oil usage by country/region (in 1,000 MT) 35


Malaysia 600 661 792 815 875 944 57% 31%

EU 317 385 501 465 430 545 72% 18%

Indonesia 110 108 76 158 199 222 102% 7%

Nigeria 176 178 187 189 201 201 14% 7%

United States 125 149 202 145 135 197 58% 6%

China 10 12 20 21 117 95 850% 3%

India 1 7 26 50 61 69 6800% 2%

Brazil 47 44 29 57 48 51 9% 2%

Mexico 15 16 45 43 44 51 240% 2%

Japan 53 52 53 51 50 50 -6% 2%

Turkey 44 38 45 51 50 50 14% 2%

Others 434 522 513 503 565 592 36% 19%

Total 1,932 2,172 2,489 2,548 2,775 3,067 59% 100%

As shown in Table 5, the major oil palm growing countries (Malaysia, Indonesia, Nigeria) play a much more important role as palm kernel oil consumers than they do as palm oil consumers (see Table 4). Malaysia alone accounts for almost one-third of global palm kernel oil usage. This dominance is mainly explained by the well-developed Malaysian oleochemical industry, which processes PKO into soap, detergents and several intermediate products that are largely exported to other countries. A similar kind of industry is developing (mainly with Malaysian capital and technology) in Indonesia as well, which explains its strong growth figures and its current position as third largest PKO market in the world.36 The second largest PKO market is still the European Union, which shows a gradual growth level just above the global average. The global market share of the EU on the PKO market (18%) is also significantly higher than its share of the global palm oil market (13%, see Table 4).

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Although it has fallen back to the fifth place in recent years the United States is still a significant PKO market, although the country hardly consumes any palm oil. This is explained by the strong soybean sector in the United States: the physical and chemical properties of soy oil are very similar to those of palm oil, while PKO has different characteristics and is used in different products. Similar to their position on the global oil palm market, China and India are important upcoming PKO markets, as is Mexico.

1.4.3 Global usage of edible oils

Palm oil and PKO are competing on a global scale with a number of other edible oils (vegetable and animal) in most markets. Each edible oil has different physical and chemical properties, making it more suitable for specific products or applications. However, for many products, one edible oil ingredient can easily be substituted for another, when availability and price makes this attractive. For price and marketing reasons end-consumers can also switch to comparable products (such as cooking oil), which are based upon another edible oil. For these reasons it is relevant to compare global oil palm usage with the global usage of other edible oils.

Table 6 Global usage of edible oils (in 1,000 MT) 37

Oil type 1995 2000 2001 2002 2003 2004 Growth Share

Soybean oil 19,436 25,134 27,508 29,963 31,232 31,290 61% 24%

Palm oil 14,710 21,676 23,789 25,606 28,250 29,899 103% 23%

Rapeseed oil 10,650 14,472 13,952 13,489 12,715 14,807 39% 11%

Sunflower oil 8,462 9,406 8,764 7,721 8,924 9,675 14% 7%

Palm kernel oil 1,932 2,551 2,800 3,141 3,479 3,496 81% 3%

Other edible oils 37,248 40,087 41,049 41,619 41,142 41,779 12% 32%

Total 92,438 113,326 117,862 121,539 125,742 130,946 42% 100%

As Table 6 shows, palm oil has recently enforced its position as the second most important edible oil when ranked by global usage. Since 1995 palm oil usage shows the strongest growth of all edible oils and palm oil now holds a 21% share of the global edible oil market. When the market share of palm kernel oil (3%) is added to that of palm oil, both oil palm derived oils near the market share of market leader soybean oil (25%). Together palm oil and palm kernel oil accounted for almost 40% of the global growth in the usage of edible oils since 1995.

1.4.4 Global palm kernel meal usage

Global palm kernel meal (PKM) usage has increased by 56% since 1995. Palm kernel meal is mostly used by the feedstock industry and therefore its geographical usage pattern differs distinctively from those of palm oil and PKO (Table 4 and Table 5). Table 7 lists the main consuming countries and regions for PKM.

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Table 7 Palm kernel meal usage by region/country (in 1,000 MT) 38


EU 1,936 1,988 2,226 2,263 2,192 2,359 22% 64%

South Korea 17 264 205 210 266 308 1711% 8%

Nigeria 44 34 44 61 120 151 243% 4%

Indonesia 11 39 13 56 95 141 1182% 4%

Australia 15 15 17 19 20 92 513% 2%

Malaysia 9 23 54 63 57 90 900% 2%

Thailand 41 57 66 63 75 71 73% 2%

Colombia 36 43 50 54 59 58 61% 2%

Ecuador 22 27 35 30 27 31 41% 1%

Cameroon 23 26 28 29 29 30 30% 1%

Others 221 274 293 317 504 366 66% 10%

Total 2,375 2,790 3,031 3,165 3,444 3,697 56% 100%

Table 7 shows that the European Union is by far the largest PKM consuming region in the world. But despite a growth in usage of 22% over the past seven years, its global market share has decreased from 82% to 64%. A number of important oil palm growing countries (Nigeria, Indonesia, Malaysia, Thailand, Colombia, Ecuador and Cameroon) are increasingly consuming their own PKM production domestically. Some industrialized Australasian countries, notably South Korea and Australia, are following the European example and are importing PKM for their livestock industries.

1.4.5 Global usage of oil meals

Just as palm oil and PKO, PKM is also competing on the global market with other oil meals. Global usage of oil meals increased by 28% since 1995, as is shown in Table 8.

Table 8 Global usage of oil meals (in 1,000 MT) 39


Soybean meal 88,022 102,070 107,106 110,140 120,298 128,847 46% 61%

Rapeseed meal 17,017 19,028 20,275 22,121 20,870 20,234 19% 10%

Cotton meal 15,037 15,320 15,029 14,592 15,281 15,852 5% 7%

Palm kernel meal 2,375 2,790 3,031 3,165 3,444 3,697 56% 2%

Other oil meals 43,601 44,586 45,127 46,746 44,711 43,791 0% 21%

Total 166,052 183,794 190,568 196,764 204,604 212,421 28% 100%

The global oil meals market is clearly dominated by soybean meal, which increased its market share to 46%. The usage of palm kernel meal is growing faster than that of other oil meals, but still only has a 2% market share on the global oil meals market. Global compound feed production amounts to around 800 million tonnes annually, including 161 million tonnes of oil meals (20%).40

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1.5 World market prices for oil palm products

Since the beginning of 2000 the CPO and PKO prices on the world market were very low. This price trend was partly caused by the rapid expansion of CPO and PKO export from the main producing countries, especially Malaysia and Indonesia.

Table 9 World market prices CPO and PKO 41 (in US$ per ton, CIF North West Europe)

Year CPO PKO

October 1992 - September 1993 387 439










October 2002 - April 2003 438 455

Because global demand is still increasing, CPO and PKO prices started to recover again in 2002 and this year they are rising further.

0

100

200

300

400

500

600

700

800

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

Year

US

$ / t

on

CPO

PKO

Figure 15. Development of the CPO and PKO prices in the past ten years

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Chapter 2 The Indonesian oil palm sector

2.1 Historical development of the Indonesian oil palm sector

2.1.1 1848-1945: Colonial development

The development of the oil palm sector in South East Asia started in 1848, when four seedlings were transported from Africa to the botanical garden in Buitenzorg (the present-day Bogor) in Java, which was then under Dutch colonial control. The descendents of these four palms were transferred to Deli in Sumatra, where they were first used for ornamental purposes only. The first large-scale Indonesian oil palm plantation was set up by Dutch traders in 1911, using the seed of these Deli-palms. Soon afterwards, British traders set up oil palm plantations in Malaysia as well.42 Setting up state-owned oil palm plantations in Indonesia was made possible by the Agrarian Law adopted by the colonial government in 1870, which declared all land not under permanent cultivation to be ‘waste land’. Dutch developers were then offered as much land as they needed on 75-year renewable leases at nominal rent. 43 Until the 1940s palm oil production developed at a moderate pace in both Malaysia and Indonesia, as it was restricted mainly to use as a lubricant. A more rapid phase of expansion began in Malaysia in the 1950s and 1960s, which turned Malaysia into the dominant oil palm producer in the world. Final processing industries in the industrialized world discovered that oil palm could be a cheap alternative to crude oil (for instance in detergents), to butter (margarine), and to other edible oils. World demand for palm oil therefore increased substantially. At the same time, global demand for rubber decreased, making it attractive to turn rubber plantations into oil palm plantations. 44

2.1.2 1945-1968: Post-colonial decline

After Indonesia had gained independence in 1945 the plantation system partly collapsed as Dutch plantation owners no longer had the backing of the colonial government and labour migration was no longer undertaken with government assistance. Furthermore, president Sukarno promoted an isolationist policy during the period (known as Guided Democracy), antagonistic towards the entry of foreign capital or foreign loans. In 1957 the Dutch colonial plantations were nationalized and placed under the control of the New State Plantation Company (Perusahaan Perkebunan Negara Baru). Since then they suffered a period of declining production. In 1967 the oil palm plantation sector covered no more than 106,000 hectares, including 65,573 hectares of state-owned plantations. 45

2.1.3 1968-1985: First expansion phase

From 1968, president Suharto started to invest again in the Indonesian oil palm sector by making direct investment via state run companies called Perseroan Terbatas Perkebunan (PTPs). During this period, the area planted with oil palm on government estates grew from 65,573 hectares in 1967 to 176,408 hectares in 1979. Most of these plantations were found in Sumatra, primarily North Sumatra. However, the government began to expand state-owned plantations into Kalimantan and Irian Jaya in the late 1980s. 46

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Since 1979 the development of private plantations and smallholder estates was stimulated by the government as well, with some World Bank aid. Under the so-called PIR/NES schemes (Perkebunan Inti Rakyat or Nucleus Estate and Smallholder Scheme) private developers (known as Inti or Nucleus) planted plots of land with oil palms on behalf of smallholders located nearby. Most of these smallholders were migrants from other areas. As the oil palms matured, usually after three to four years, the plots were transferred to the smallholders (known as Plasma), who developed the plantations under the supervision of the Inti developers. Inti developers were then required to purchase the oil palm fresh fruit bunches (FFB) from the smallholders, process them into CPO and sell this CPO on the market. Since the PIR/NES scheme was initiated, smallholder plantations have further expanded under the PIR-Transmigration scheme (1986-1994) and the KKPA scheme (1995-1998), which both stimulated smallholder developments in transmigration areas. Non-existent in 1978, planted areas held by smallholders grew to a total of 1.1 million hectares in 1999. Most smallholder estates are found in Riau, South Sumatra, North Sumatra, Jambi and West Kalimantan.47 During this first expansion phase, total acreage of the Indonesian oil palm plantation sector increased fivefold from 120,000 hectares in 1968 to 600,000 hectares in 1985. 48

2.1.4 1985-1998: Second expansion phase

As the world demand for oil palm continued to grow at a rapid pace, the Suharto regime and its cronies recognized the possibilities of further developing the oil palm sector during the 1980s. Labour costs are much lower in Indonesia than in Malaysia and land is more abundantly available. The average cost of producing one ton of crude palm oil was calculated in 1998 at US$ 225.5 for Malaysia, US$ 296.1 for Colombia, US$ 298.4 for Ivory Coast and only US$ 206.8 for Indonesia.49 In the mid-1980s the Indonesian government formulated a policy goal to overthrow Malaysia as the world’s largest palm oil producer. To achieve this aim, large forest areas where handed out to the large Indonesian business groups and to foreign investors. Officially, the government reserved 5.5 million hectares, mainly covered with forests, to be converted into oil palm plantations. But the Indonesian consultancy Data Consult in 1996 calculated from records of the Investment Coordinating Board (BKPM) that the government had actually allocated 9.13 million hectares of land for oil palm plantations in the eastern part of the country alone, including 5.56 million hectares in Irian Jaya, 1.70 million hectares in East Kalimantan and 1.80 million hectares in Maluku.50 Even this area looked insufficient to satisfy the appetite of the oil palm plantation sector. According to some sources, private plantation companies around 1995 had applied for the conversion of an additional 20 million hectares of forestland into oil palm plantations. Part of this tremendous demand was motivated by the search for cheap timber supplies, rather than serious investment plans.51 Greater private sector involvement in the oil palm sector was also encouraged between 1986 and 1996 by granting access to credit at concessionary rates for estate development, new crop planting and crushing facilities. Newly established companies could then draw on a loan from an executing bank at a rate of 11 percent during land preparation and establishment of the trees and 14 percent after the trees had begun to yield. In turn, the executing bank was eligible to borrow from the Bank of Indonesia at a concessionary rate of 4 percent. The interest subsidies were intended to help investors overcome risks and uncertainties associated with establishing estates involving smallholders. 52

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As a result of this expansion drive, the area planted with oil palm in Indonesia increased considerably from the mid-1980s. Starting from about 600,000 hectares in 1985, the total area reached approximately 2.8 million hectares in 1998 and 4.1 million hectares in 2003. Private plantations, which covered just 145,000 hectares in 1986, experienced the strongest growth during the 1990s and now cover 2.0 million hectares. 53

Oil palm plantation acreage in Indonesia

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

1968 1973 1978 1983 1988 1993 1998 2003

Year

Hec

tare

s

Figure 16. Development of oil palm plantation acreage in Indonesia

Figures on the development of the mature oil palm acreage in Indonesia are provided in Table 10. As planting has slowed down during the past few years, the mature acreage is close to the total planted acreage at present. The mature acreage increased by 118% over the past eight years.

Table 10 Indonesian mature oil palm acreage (in 1,000 ha) 54

Year 1995 1998 1999 2000 2001 2002 2003 Growth

Oil palm acreage 1,350 1,828 2,022 2,208 2,465 2,734 2,937 118%

As a consequence of the tremendous increase in oil palm acreage, the production and export of Indonesian oil palm products has also grown rapidly. Production growth in Indonesia (114% over the past seven years) was stronger then in any other producing country. In the late 1980s and early 1990s this production growth was mirrored by a strong rise in domestic usage, from 0.7 million tonnes in 1986 to 2.8 million tonnes in 1997.

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Table 11 Indonesian production and export of palm oil (in 1,000 MT) 55

Year 1995 1996 1997 1998 1999 2000 2001 2002 Growth

CPO production 4,220 4,540 5,380 5,361 6,250 7,050 8,030 9,020 114%

Palm oil export 1,855 1,851 2,982 2,260 3,319 4,140 4,940 6,380 244%

Export % 44% 41% 55% 42% 53% 59% 62% 71% This sharp increase was caused by several factors, mainly increasing population and income per capita. Since 1997, domestic use has been growing only modestly to 2.9 million tonnes in 2002, leaving a surplus production to be exported. Over the past seven years, export growth was much stronger (244%) than production growth and now 71% of total production is exported. The development of the Indonesian oil palm sector, in other words, is increasingly export-driven. For the year 2003, the Indonesian Palm Oil Producers Association (Gapki) expects CPO output to increase to 9.6 million tons.56 The authoritative Oil World magazine is somewhat more cautious expecting an output of 9.3 million tons for 2003 and an export of 6.27 million tonnes.57

Indonesian palm oil production and export

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1995 1996 1997 1998 1999 2000 2001 2002

Year

1,00

0 To

nnes

Palm oil production Palm oil export

Figure 17. Indonesian palm oil production and export 1995-2002

Figures for palm kernel oil production and export (Table 12) show a comparable pattern, although the export percentage is higher there are also greater fluctuations. Domestic usage of palm kernel oil in the expanding oleochemical industry plays a significant role here (see paragraph 2.3.5).

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Table 12 Indonesian production and export of palm kernel oil (in 1,000 MT) 58

Year 1995 1996 1997 1998 1999 2000 2001 2002 Growth

PKO production 552 658 735 808 937

PKO export 311 413 598 579 582 738 137%

Export % 75% 91% 79% 72% 79% Obviously, the strong growth of the oil palm plantation sector has brought economic benefits to Indonesia. In 1997, when CPO and PKO prices were at their peak, the export earnings of the oil palm sector were valued at US$ 1.7 billion. In 1998 they tumbled to US$ 940 million, but in 2002 they had recovered to US$ 2.1 billion. Indonesia’s oil palm industry is also an important employer, with over 800,000 people employed directly and another 2 million people employed indirectly. 59 To realise these benefits, significant investments were needed. Developing a new plantation often involves building a CPO mill as well, and it takes a number of years before the plantation starts producing. On average, developing a new plantation costs between US$ 2,500 and 3,500 per hectare. A CPO mill with a processing capacity of 30 tons of FFB per hour is estimated to cost US$ 5 million.60 Based upon our analysis of the financing structures of 27 prominent Indonesian oil palm plantation groups, we estimate the total investment figure for the Indonesian oil palm sector as a whole at US$ 10.0 billion over the past ten years. 61 These investments were only partly provided by the Indonesian state and wealthy Indonesian businessmen. Direct investments by Malaysian plantation companies in Indonesian joint-ventures were encouraged, some other foreign companies have also set up or acquired Indonesian oil palm plantation subsidiaries and foreign individuals and financial institutions have invested in shares of Indonesian oil palm plantation companies listed on the stock exchange. Furthermore, especially during the mid-1990s, domestic and foreign banks have financed a large part of the expansion process by issuing loans and other forms of credit. 62

2.1.5 1998-2002: Investment pause

Between1998 and 2002, the expansion of the Indonesian oil palm sector was much slower than during the preceding decade. During this period, many oil palm groups ran into financial trouble and lacked sufficient funds to invest in existing plantations or open new ones. The slackening off of oil palm expansion is not yet visible in the CPO production figures, as it takes three years after planting before an oil palm starts producing and another five years before it reaches its full production capacity. Because of the large number of oil palms planted before 1998, output has continued to grow during the past few years. New plantings have clearly slowed down considerably, which in turn will reduce output growth in the coming years.63

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0

50,000

100,000

150,000

200,000

250,000

300,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Figure 18. Annual area planted with oil palms in Indonesia (hectares)

The main reasons why many oil palm plantation companies ran into financial problems in the period 1998-2002, are discussed briefly below: • The Rupiah exchange rate

The so-called Asia Financial Crisis of 1997/1998, resulted in a strong devaluation of the Rupiah since the end of 1997. In June 1997, one US dollar equalled 2,432 Rupiah, but in June 1998 the exchange rate had slipped to 14,925 per dollar. Table 13 and the accompanying figure below show how the dollar/rupiah exchange rate has deteriorated in the past three years.

Table 13 Exchange rate Rupiah / Dollar 64

Year Average At 31 December

1996 2,328.5 2,363.1

1997 2,903.5 5,535.0

1998 10,285.4 8,005.0

1999 7,876.9 7,150.0

2000 8,415.8 9,725.0

2001 10,293.8 10,505.0

2002 9,350.1 8,962.2

2003 8,592.8 8,464.7

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Rp0

Rp2.000

Rp4.000

Rp6.000

Rp8.000

Rp10.000

Rp12.000

Rp14.000

Rp16.000

1997 1998 1999 2000 2001 2002 2003 2004

Date

1 U

S$=

Figure 19. Exchange rate of the rupiah vs. the dollar 1997-2004

This development had mixed consequences for the Indonesian oil palm companies. Companies exporting a large part of their production, saw their Rupiah-income rise substantially while for instance labour costs did not rise significantly. But companies that had borrowed large sums from foreign banks, needed much more Rupiahs to pay interest and principal on their debts. For companies exporting a large part of their production, this was less of a burden. However, companies producing mainly for the domestic market that had borrowed large sums from foreign banks, ran into financial trouble.

• Prices on the world market

Since the beginning of 2000 the CPO and PKO prices on the world market were very low (see Table 9). This price trend was partly caused by the rapid expansion of CPO and PKO export from Indonesia. But for the individual Indonesian producer it meant that export earnings were much lower than expected in 2000 and 2001. However, in 2002 CPO and PKO prices started to recover and during 2003 they have risen further. Export earnings and profits for the Indonesian oil palm companies are rising accordingly.

• The CPO export ban and export tax

In the beginning of 1998, the Indonesian government decided to ban the export of CPO for four months. The reason for this was that most Indonesian oil palm companies since mid-1997 tried to export as much of their production as possible, as the devaluation of the rupiah and the high CPO prices on the world market offered very high returns. This resulted in shortages and accompanying price rises on the domestic market for cooking oil, which is seen as a vital commodity by most Indonesians. To diminish social unrest, the Suharto regime decided to temporarily ban the CPO export.65 Oil palm plantation companies that had borrowed large sums from foreign banks, were thereby deprived of the possibility of earning foreign currency to pay interest and principal on their debts.

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In April 1998, the CPO export ban was replaced by a CPO export tax of 40 percent, in an attempt to normalise the CPO prices on the domestic and export markets. The export tax was levied on the difference between a government-determined target price and the actual export price. Since April 1998, this export tax has been raised and then gradually reduced, as shown in Table 14.

Table 14 Indonesian CPO export ban and export tax 66

From To CPO export tax / ban

December 1997 5%

December 1997 January 1998 30%

January 1998 April 1998 Export ban

April 1998 July 1998 40%

July 1998 February 1999 60%

February 1999 June 1999 40%

June 1999 July 1999 30%

July 1999 September 2000 10%

September 2000 February 2001 5%

February 2001 3%

Especially the export ban, but also the high export taxes at the end of the 1990s have contributed to the financial troubles faced by many Indonesian oil palm companies since 1998.

• Policy changes in Indonesia

After President Suharto stood down in May 1998, the new Habibie government came under a great deal of pressure to reform the forest sector and rid Indonesia of corruption, collusion and nepotism (KKN). Some of these changes have deterred investment in the oil palm sector: • In early June 1998, the Ministry of Forestry and Estate Crops instructed all provincial

forestry and plantation offices to revoke the forest use and conversion permits of estate crop companies that were only interested in cutting timber from their concessions and had failed to develop their estates. This instruction was strengthened when, in October 1998, the Ministry of Forestry and Plantation Estate Crops issued a statement saying that they had stopped issuing new licences to open up conversion forest land for plantation estates because many investors had neglected their projects. According to the government, only 1.4 million hectares (16.5 percent) had been realised from the nine million hectares of forests licensed for plantation estates since early 1990. Investors were then warned that the government would revoke their licences if they did not start their projects within the next year. The instruction to revoke the plantation licences of companies that had failed to develop their estates has been implemented at least partially at the provincial level and has greatly concerned the industry. 67

• In March 1999, the Ministry of Forestry and Estate Crops released a regulation that limited plantation concession sizes. This regulation set the tree crop plantation development area at 20,000 hectares in any one province, and up to a maximum of 100,000 hectares in the whole country for a given company. This regulation has created much unrest, but seems ineffective. It is not preventing separate companies owned by the same owner (business group) exceeding the maxima jointly. Plantations are also required to have their own CPO-mill.68

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• During 1998 and 1999 frequent changes were made to the domestic CPO distribution system as well as to the CPO export system. CPO distribution used to be dominated by Bulog, the National Logistics Agency, but the government has now retreated from this sector. The current government policy is not to intervene in CPO price-setting as long as there is adequate oil supply. 69

• Social unrest

The relative political liberalisation which has taken place in Indonesia since the end of 1998, has provided room for local communities to step up protests against further oil palm expansion by burning estate offices, large machinery, processing plants and plantations. Local communities have reclaimed land taken from them during the Suharto-era, when oil palm plantation companies were given concessions to vast areas of land which the local people considered theirs. Often it was taken by force, and frequently the local communities received no compensation. Prior to Suharto's fall in 1998, any attempt to invade land was suppressed by the army. But in the age of reformasi, the authorities became reluctant to side with the big companies.70 Looting also increased on estates because estate workers and local communities began to experience increased living costs after the rupiah depreciated against the dollar. Some resorted to looting in order to supplement their incomes. 71

• Foreign reluctance to invest in Indonesia

Since 1998, foreign companies and banks have shown great reluctance to invest in Indonesia, and especially in the oil palm sector. The general reluctance is caused by the economic and political instability facing the country since the financial crisis of 1997/1998. Many Indonesian companies suffered financial collapse during that period, exposing the large loans extended to them by local banks (which often belonged to the same business groups). Many Indonesian banks ran into financial difficulties, forcing the Indonesian Bank Restructuring Agency (IBRA) to take over these banks and guarantee their loans. As collateral, IBRA seized shareholdings in other companies from the owners of these banks. By selling these assets, IBRA tried to restructure the Indonesian banking sector, but this restructuring is still not finished. The efforts of IBRA were also hampered by the strong political and social unrest which accompanied the end of the Suharto regime in May 1998 and the subsequent hesitating transition towards democracy. A new, stable political order has yet to emerge, which makes foreign investors wary. In particular, the oil palm sector was unpopular with foreign banks between 1998 and 2002, as the loans extended in the mid-1990s had not generated the expected returns. Because of the reasons outlined above, many Indonesian oil palm companies were unable to pay scheduled interest and principal on their debts. Many oil palm companies entered into a difficult debt restructuring process, which often forced foreign banks to accept write offs on their outstanding loans. At the same time, foreign banks were faced with NGO-criticism of their role in converting the Indonesian forests into oil palm plantations.72 All these factors greatly reduced the appetite of foreign banks to lend to Indonesian oil palm companies. The successful IPO of Golden Agri-Resources in July 1999 on the Singapore stock exchange was a remarkable exception, resulting from generally positive perceptions of the Sinar Mas Group that still existed abroad.

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Indonesian banks and the Indonesian capital market offered some relief during this period. For those Indonesian oil palm companies that were not in big financial trouble, but were nonetheless excluded from international financing because of the reluctance to invest in the sector described above, the domestic capital market provided an alternative. A number of companies attracted local bank loans, companies such as Astra Agro Lestari and Indofood were able to issue bonds on the local market and Tunas Baru Lampung even succeeded in making a successful IPO in February 2000.

• Financial problems of sister and mother companies

Sometimes exacerbating the financial problems of some oil palm plantation companies in the period 1998-2002, were the financial problems of their respective sister and mother companies. Golden Agri-Resources of the Sinar Mas Group for instance is still not able to use the cash deposits it had deposited at a bank in the Cook Islands which itself is also part of the Sinar Mas Group as this bank had run into serious trouble itself. And PP London Sumatra Indonesia was unable to retrieve the considerable loans it had extended to its mother company Pan London Sumatra Plantation. Also, a number of Indonesian oil palm plantation companies have been put up for sale, as their mother companies try to raise cash to pay their own debts. This was the case with Golden Agri-Resources of the Sinar Mas Group and Astra Agro Lestari of the Astra Agro Group, and probably also with PP London Sumatra Indonesia. A large part of the oil palm plantations of the Salim Group have already been handed over to IBRA, and were subsequently sold to Kumpulan Guthrie Berhad. And Bakrie Sumatera Plantations became effectively owned by a large group of Indonesian and foreign banks as a consequence of the debt restructuring of its parent company Bakrie & Brothers.

2.1.6 Since 2002: Renewed expansion

During 2002 and certainly during the first half of 2003, the tide seems to have turned for the Indonesian oil palm sector. CPO and PKO prices on the world market have recovered (see figure 2.2) and the rupiah has appreciated somewhat relative to the dollar. Almost all oil palm groups are making profits again and most have finally succeeded in restructuring their debts: some debts have been written off and others rescheduled.

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Oil palm plantations by province

20%

20%

9%8%

7%

5%

3%

2%

9%

4%

4%2%

3% 1%2%1%

North Sumatra

Riau

South Sumatra

Jambi

Aceh

West Sumatra

Bengkulu

Lampung

West Kalimantan

South Kalimantan

Central Kalimantan

East Kalimantan

South Sulawesi

Central Sulawesi

West Papua

West Java

Figure 20. Indonesian oil palm plantations by province

Figure 20 provides details of the geographical distribution of the Indonesian oil palm plantations in 2001, as provided by the Ministry of Agriculture. More than 75% of all oil palm plantations are located in Sumatra and another 19% in Kalimantan. Oil palm plantation development in Sulawesi and West Papua has only just started. 73 Now they have the required financial resources, many oil palm companies are resuming their expansion plans. Early in 2003 the Indonesian Agriculture Ministry announced it had licensed 74 companies to open new oil palm plantations covering an additional 672,977 hectares. These companies promised to make a total investment of Rp 17,300 billion (US$ 2.1 billion). With the addition of these new oil palm plantations Indonesia's CPO production is expected to outstrip Malaysia's in two to three years' time, according to the Ministry.74 But this will only be achieved when more CPO milling capacity has been established in the main plantation regions. After harvesting, the oil palm fruit has to be processed within 24 hours to avoid the rapid build-up of free fatty acids. Between 1998 and 2002, many plantation companies were forced to postpone the building of CPO mills due to a lack of funds. Meanwhile, areas planted with oil palms before 1998 have become mature. As a consequence, at least one million tons of fresh fruit bunches (FFB) were wasted last year due to a lack of milling capacity. This amounts to 0.2 million tonnes of CPO that was lost. Indonesia has nearly 300 mills spread over some 16 provinces. About 240 of these are located in the northern parts of Sumatra and nearly 40 in Kalimantan. South Sumatra and Kalimantan in particular still face a capacity shortage, especially in the peak production months. South Sumatra province alone needs at least 22 new CPO-mills, according to its governor in January 2003.75

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Further expansion of the Indonesian oil palm sector requires substantial additional investments, for which the support of financial institutions is needed. New bank lending by domestic and foreign banks is increasing once again and some companies even have issued bonds into the international capital markets. Landmarks were the loans arranged by ING Bank (The Netherlands) for Indofood in April 2002 and by Rabobank (The Netherlands) for Kumpulan Guthrie’s Indonesian operations in March 2003, as well as Indofood’s international bond issuance in July 2002 which was managed by Crédit Suisse (Switzerland). With the economic prospects for the sector improving and with some of the major foreign banks apparently overcoming their reluctance to invest in the Indonesian oil palm sector, a new expansion phase is clearly gaining momentum.

2.2 Export markets for the Indonesian oil palm sector

2.2.1 Introduction

The oil palm yields three basic products: crude palm oil, crude palm kernel oil and crude palm kernel meal. In the following paragraphs data are provided on the Indonesian exports of these basic products, in combination with some derived products: • Crude palm oil is refined into RBD palm oil, and then fractionated into RBD olein and RBD

stearin. In trade statistics these four products (CPO, RBDPO, RBD olein and RBD stearin) are generally taken together under the heading palm oil. In paragraph 2.2.2 we provide data on the Indonesian palm oil exports, comprising the combined exports of these four products.

• Similarly, in paragraph 2.2.3 data are presented for the combined exports of crude palm kernel oil and RBD palm kernel oil from Indonesia.

• Paragraph 2.2.4 provides data on the Indonesian export of palm kernel meal. Indonesian export figures for oleochemical products and speciality fats are not available.

2.2.2 Palm oil export markets

The development of the Indonesian oil palm sector is increasingly export-driven, as palm oil exports increased by 244% in the past seven year. Table 15 provides an overview of the main export markets for Indonesian palm oil (crude and refined). Despite a volume growth of 60% since 1995, the European Union lost its position as the most important export market for Indonesian palm oil to India. The share of the EU declined from 50% to 23%, while India now accounts for 28% of Indonesian palm oil exports. Some other Asian markets, especially China, Malaysia, Pakistan, Bangladesh and Hong Kong are quickly expanding their palm oil imports from Indonesia. On a lower level, the same applies to some African countries (Egypt, Tanzania, Nigeria and South Africa) as well as to Jordan and Russia. In the past seven years Indonesia has further diversified its export markets, a development that looks likely to continue. Indonesian palm oil exports to Malaysia - still the largest palm oil exporter in the world - are remarkable. It is probable that this palm oil is re-exported from Malaysia, but classified as Malaysian palm oil.

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Table 15 Export markets for Indonesian palm oil (in 1,000 MT) 76

Year 1995 1998 1999 2000 2001 2002 Growth Share

India 113 309 1,029 1,639 1,520 1,767 1,464% 28%

European Union 935 993 1,002 908 1,185 1,496 60% 23%

China 181 325 354 693 681 789 336% 12%

Malaysia 27 264 273 76 78 405 1,400% 6%

Pakistan 41 16 10 15 97 269 556% 4%

Bangladesh 3 12 41 96 179 221 7,267% 3%

Turkey 31 10 45 68 154 152 390% 2%

Nigeria 0 0 21 51 53 141 > 100% 2%

Tanzania 5 3 36 87 110 114 2,180% 2%

Hong Kong 19 8 12 34 31 101 432% 2%

Jordan 39 6 4 14 25 96 146% 2%

South Africa 4 7 47 61 136 93 2,225% 1%

Russia 0 0 3 10 88 91 > 100% 1%

Egypt 56 22 70 35 96 89 59% 1%

Other countries 401 285 372 353 507 556 39% 9%

Total export 1,855 2,260 3,319 4,140 4,940 6,380 244% 100%

2.2.3 Palm kernel oil export markets

Indonesian palm kernel oil (PKO) exports increased by 137% over the past seven years. Table 16 provides an overview of the main export markets for Indonesian PKO.

Table 16 Export markets for Indonesian PKO (in 1,000 MT) 77


European Union 222 303 362 330 304 449 102% 61%

Malaysia 7 31 33 41 26 63 800% 9%

India 1 2 24 57 49 49 4,800% 7%

China 0 0 4 3 60 36 > 100% 5%

Turkey 12 11 29 35 37 31 158% 4%

Mexico 0 2 28 15 27 23 > 100% 3%

Singapore 0 3 4 3 6 12 > 100% 2%

United States 19 38 73 50 20 11 -42% 1%

Brazil 26 11 16 23 22 7 -73% 1%

Canada 19 6 4 2 0 0 -100% 0%

Other countries 5 6 21 22 31 57 1,040% 8%

Total export 311 413 598 579 582 738 137% 100%

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Unlike the palm oil market (Table 15), the European Union is still the most important export destination by far for Indonesian palm kernel oil. Exports to the EU doubled in the past seven years and its share in total Indonesian PKO exports slipped only slightly from 71% to 61%. As is the case with Indonesian palm oil, Malaysia, India, China and Turkey are also strongly expanding their PKO imports from Indonesia. The same applies to Mexico, but the United States, Canada and Brazil seem to be decreasing their PKO imports from Indonesia. As Malaysia is also an important exporter of PKO, Indonesian PKO exports to Malaysia could be re-exported.

2.2.4 Palm kernel meal export markets

Indonesian palm kernel meal (PKM) exports increased by 109% over the past seven years. Table 17 provides an overview of the main export markets for Indonesian PKM.

Table 17 Export markets for Indonesian PKM (in 1,000 MT) 78


European Union 455 572 716 670 632 876 93% 87%

South Korea 6 83 78 66 59 67 1,117% 7%

Singapore 0 23 26 70 15 25 >100% 2%

China 0 0 0 4 123 13 >100% 1%

South Africa 0 0 0 0 2 11 >100% 1%

United States 8 0 6 0 15 5 -37% 0%

Malaysia 0 0 0 2 14 0 0% 0%

Other countries 15 5 0 10 20 13 -13% 1%

Total export 483 683 825 822 880 1,010 109% 100%

Even more than is the case for Indonesian PKO, the European Union is the dominant export market for Indonesian PKM. Indonesian PKM exports to the EU increased by 93% over the past seven years, and its share of Indonesia’s PKM exports only slipped slightly from 94% to 87%. Apart from the EU, only South Korea and Singapore seem to be stable (although much smaller) export markets for Indonesian PKM. Other countries, such as China, South Africa, the United States and Malaysia, seem to import Indonesian PKM on a more sporadic basis.

2.3 Business groups in the Indonesian oil palm sector

2.3.1 Oil palm plantations and CPO mills

There are hundreds of oil palm plantation companies active in Indonesia. The larger plantation companies usually operate their own CPO mill, while the smaller plantation companies sell their Fresh Fruit Bunches to CPO mills of neighbouring plantations. While the total number of oil palm plantation companies is very large, a limited number of Indonesian and foreign business groups controls most of them. Table 18 provides an overview of the largest business groups operating in the oil palm plantation sector (including the state-owned Perkebunan Nusantara Group).

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Table 18 Major oil palm plantation groups in Indonesia 79

Group Country of ultimate ownership

Land bank (ha)

Planted area (ha)

CPO production

(tons)

Case study

Anglo-Eastern Malaysia 33,692 18,389 63,240

Astra Agro Singapore 290,621 189,970 543,635 12

Bakrie Indonesia 80,000 34,681 55,401

Benua Indah Indonesia 180,000 ? ?

Bolloré France 37,467 37,467 182,628

Bumi Flora & Parasawita Indonesia 11,982 ? ?

Cargill United States 27,000 27,000 100,000

Carson Cumberbatch Sri Lanka 15,934 12,557 26,570

CDC United Kingdom 30,625 22,731 100,000 2

Cisadane Indonesia 20,652 ? ?

Dutapalma Indonesia 60,000 42,000 ?

Golden Hope Malaysia 72,000 8,014 ?

Hasil Karsa Indonesia 14,000 ? ?

Hasko Indonesia 8,000 ? ?

Incasi Raya & Metro Indonesia 200,000 ? ?

Johor Malaysia 140,000 19,622 ?

Kuala Lumpur Kepong Malaysia 52,000 31,808 ?

Kumpulan Guthrie Malaysia 215,973 162,213 329,524 9-11

Kuok Malaysia 57,927 9,708 16,100 3

Lyman Indonesia 160,000 ? ?

Musim Mas Indonesia 60,000 ? ?

Napan & Risjadson Indonesia 340,000 40,534 259,492 5

Oriental Malaysia 43,900 ? ?

Perkebunan Nusantara Indonesia 770,000 561,126 2,094,364 14

Raja Garuda Mas Indonesia 543,000 317, 850 600,000 6,7

REA United Kingdom 125,000 13,209 28,557

Rowe Evans United Kingdom 35,304 25,136 ?

Salim Indonesia 230,000 161,973 775,651 7

Sinar Mas Indonesia 591,000 282,000 1,105,000 8

Sipef Belgium 65,000 29,364 127,003

Sungai Budi Indonesia 62,015 12,000 ?

Surya Dumai Indonesia 154,133 23,975 ?

Tirtamas and Maharani Indonesia 270,000 105,282 ?

Wilmar United States / China ? ? ?

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Total for Indonesia ? 4,100,000 9,020,000

Some of these plantation groups own edible oil refineries as well (see paragraph 2.3.3). It can be assumed that a large part or all of their CPO production is sent to these refineries. But many of the plantation groups listed in Table 18 also export their CPO directly. The following information related to the export of oil palm products is found for these oil palm plantation groups: • Astra Agro Group: Domestic customers buying crude oil palm products from the Astra

Agro Group include:80

• PT Bukit Kapur Reksa Wilmar Group • PT Darmex Oil & Fats Dutapalma Group • PT Sawitra Oil Grains Salim Group • PT Sinar Alam Permai Wilmar Group • PT Smart Sinar Mas Group

Foreign customers buying crude oil palm products from the Astra Agro Group include: 81

• Cargill United States • Gardner Smith Australia • Kumpulan Guthrie Malaysia • Kuok Singapore • Wilmar Singapore

• Cargill Group: Cargill owns one plantation in South Sumatra, PT Hindoli, producing

100,000 tonnes of CPO annually. Cargill Indonesia also operates as buyer and exporter of palm oil and palm kernel oil from other plantations, crushing plants and refineries. Operating a storage tank program in Belawan and Dumai, the company collects palm oil direct from both large and small plantations. The annual CPO volume exported by Cargill is around 700,000 tonnes, 11% of total Indonesian CPO export (see Table 15).82 Indonesian oil palm plantation and refinery companies (outside the Cargill Group) from which Cargill is buying crude or refined oil palm products include: 83

• Golden Agri-Resources Ltd. Sinar Mas Group84 • PT Astra Agro Lestari Astra Agro Group85 • PT Bukit Kapur Reksa Wilmar Group • PT Cirenti Subur Dutapalma Group • PT Darmex Oil & Fats Dutapalma Group • PT Dutapalma Nusantara Dutapalma Group • PT Eka Dura Indonesia Astra Agro Group • PT Eluan Mahkota Dutapalma Group • PT Intibenua Perkasatama • PT Ivo Mas Tunggal Sinar Mas Group • PT Johan Sentosa Dutapalma Group • PT Jumbo Glory • PT Kantor Pemasaran Bersama Perkebunan Nusantara Group • PT Karya Amal Tani • PT Kencana Amal Tani Dutapalma Group • PT Musim Mas Musim Mas Group • PT Permata Hijau Sawit • PT PP London Sumatra Indonesia Napan & Risjadson Groups86

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• PT Sari Lembah Subur Astra Agro Group • PT Sawitra Oil Grains Salim Group • PT Siringo-Ringo Musim Mas Group • PT Smart Sinar Mas Group • PT Swasti Siddhi • PT Taluk Kuantan Perkasa Dutapalma Group • PT Tunggal Perkasa Astra Agro Group • Sipef Group 87

PNG oil palm plantation companies from which Cargill is buying crude oil palm products include:

• New Britain Palm Oil Johor Group88 • CDC Group: The foreign marketing office of the CDC Group is Pacific Rim Palm Oil Ltd.

in Singapore.89 • Dutapalma Group: Foreign customers buying crude or refined oil palm products from the

Dutapalma Group include: 90

• Cargill United States • Gardner Smith Australia • Kumpulan Guthrie Malaysia • Kuok Singapore • Wilmar Singapore

• Golden Hope Group: The Golden Hope group has a subsidiary in Germany, Paul

Tieffenbacher GmbH., which acts as its European marketing office.91 Golden Hope also owns the edible oils refinery Unimills B.V. in the Netherlands, which it probably also supplies with palm oil from Malaysia and Indonesia (see paragraph 4.2.2).92 An important foreign customer buying refined oil palm products from the Golden Hope Group is:93

• Britannia Food Ingredients United Kingdom • Johor Group: The Johor Group has a subsidiary in the Netherlands, Matthes & Porton

B.V., which probably acts as its European marketing office (see paragraph 4.1.4).94

• Kumpulan Guthrie Group: The Kumpulan Guthrie Group has a subsidiary in the United Kingdom, Guthrie Symington Ltd., which acts as its European marketing office. A wide range of rubber & latex grades, rubber related industrial products and edible oils are also sourced from outside the Kumpulan Guthrie Group via an extensive network of producer contacts. Outside the UK, Guthrie Symington also has offices in Milan (Italy), Paris (France) and Durban (South Africa) (see paragraph 6.1.4).95 Indonesian oil palm plantation and refinery companies (outside the Kumpulan Guthrie Group) from which Guthrie Symington is buying crude or refined oil palm products include:96

• PT Dutapalma Nusantara Dutapalma Group • PT Eluan Mahkota Dutapalma Group • PT Inti Buana Perkasatama • PT Ivo Mas Tunggal Sinar Mas Group • PT Jumbo Glory

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• PT Karya Amal Tani • PT Karya Sawit Lestari • PT Permata Hijau Sawit • PT PP London Sumatra Indonesia Napan & Risjadson Groups97 • PT Siringo-Ringo Musim Mas Group • PT Tunggal Perkasa Astra Agro Group

• Kuok Group: Kuok Oils & Grains Pte. Ltd. in Singapore is the edible oils marketing

company of the Malaysian Kuok Group. This company buys oil palm products produced by its own Indonesian oil palm plantations and outside oil palm plantation companies. Crude palm oil, crude palm kernel oil and palm kernels can be transported to the refineries and palm kernel crushing plants of PGEO Group Sdn. Bhd. in Malaysia for further processing. But they can also be shipped to external customers directly, just as the refined oils produced by the Malaysian operations of the Kuok Group. Transport is carried out by Malaysian Bulk Carriers Sdn. Bhd., a company partly owned by the Kuok Group.98 The Kuok Group is closely related to the Wilmar Group. Other Indonesian oil palm plantation and refinery companies from which Kuok is buying crude or refined oil palm products include: 99

• PT Bukit Kapur Reksa Wilmar Group • PT Cirenti Subur Dutapalma Group • PT Dutapalma Nusantara Dutapalma Group • PT Eka Dura Indonesia Astra Agro Group • PT Gandaerah Hendana Barito Pacific Group • PT Intibenua Perkasatama • PT Ivo Mas Tunggal Sinar Mas Group • PT Johan Sentosa Dutapalma Group • PT Musim Mas Musim Mas Group • PT Permata Hijau Sawit • PT Taluk Kuantan Perkasa Dutapalma Group • PT Tunggal Perkasa Astra Agro Group

Possibly Kuok Oils & Grains Pte. Ltd. is (or will become) involved as well in the export sales of the Napan & Risjadson Groups and the Tirtamas and Maharani Groups.

• Musim Mas Group: See paragraph 2.3.3.

• Napan & Risjadson Groups: PT PP London Sumatra Indonesia Tbk. (LonSum) exports

much of its CPO production via the Belawan port in North Sumatra. Its CPO was stored by tank storage company PT Deli Tama Indonesia. LonSum was among the Deli Tama clients whose CPO-exports were contaminated with diesel in the fall of 1999. In December 1999 LonSum switched to two other storage companies, PT Prima Palm Indah and PT Belawan Tanki Indonesia (see 2.3.6), to store its CPO in Belawan.100 Foreign customers buying crude oil palm products from the Napan & Risjadson Groups include (the referenced year is the last year in which it is certain that the company was a customer): 101

• Anglia Oils (now Aarhus United) United Kingdom 1997 • Gardner Smith Australia 1995 • Wilmar Singapore 2002

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Foreign customers possibly buying crude oil palm products from the Napan & Risjadson Groups include (the referenced year is the last year in which it is certain that the company was a customer): 102

• Cadbury Schweppes United Kingdom 2002 • Cargill United States 2001 • Genvora Singapore 1996 • Kumpulan Guthrie Malaysia 2002 • Ito Shoji Co. Japan 1998 • MacRobertson Foods Singapore 1999 • State Company Food Stuff China 1998

Recently, the Kuok Group acquired a large shareholding in the LonSum Group.103 Possibly Kuok Oils & Grains Pte. Ltd. will become involved in the export sales of the LonSum Group.

• Perkebunan Nusantara Group: The marketing of CPO produced by the oil palm

plantations of the Perkebunan Nusantara Group is handled by the Group’s joint marketing office Kantor Pemasaran Bersama (KPB). CPO produced by Perkebunan Nusantara plantation companies in North Sumatra, West Sumatra, Lampung and in part of Java is stock-piled and distributed by PT Deli Tama Indonesia in the Belawan port (see paragraph 2.3.6).104 The German company Indoham MbH. (a joint-venture between the Perkebunan Nusantara Group and three German companies) is the marketing office of the Perkebunan Nusantara Group in Europe.105 Foreign customers buying crude or refined oil palm products from the Perkebunan Nusantara Group include: 106

• Cargill United States • Wilmar Singapore

• Sipef Group: The Sipef Group sells oil palm products to Unilever and Cargill.107 • Salim Group: PT Sawitra Oil Grains is the edible oil trading subsidiary of food company

PT Indofood Sukses Makmur. Sawitra trades in crude and refined palm oil, palm kernel oil and coconut oil, produced by oil palm plantations belonging to the Salim Group as well as by other companies. Around 25% of its sales are to export markets.108 Foreign customers of PT Sawitra Oil Grains include (the referenced year is the last year in which it is certain that the company was a customer):109

• Archer Daniels Midland United States 1999 • Cargill United States 2002 • Gardner Smith Australia 1999 • Lotte Trading South Korea 1997 • Nabisco United States 1997 • Procter & Gamble United States 2001 • Safic Alcan France 1999 • Unilever Netherlands / United Kingdom 1997

• Sungai Budi Group: Oil palm products are marketed abroad by Inter-United Enterprises

Pte. Ltd. in Singapore, probably a subsidiary of the Sungai Budi Group.110 • Sinar Mas Group: Oil palm products are marketed abroad by Golden Agri International

Ltd. in Singapore, a subsidiary of Golden Agri-Resources Ltd.111

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Foreign customers buying crude or refined oil palm products from the Sinar Mas Group include: 112

• Cargill United States • Gardner Smith Australia • Kumpulan Guthrie Malaysia • Kuok Singapore • Marubeni Corporation Japan • Mitsubishi Corporation Japan • Unilever The Netherlands / United KIngdom • Wilmar Singapore

• Tirtamas and Maharani Groups: In setting up their oil palm plantations, the Tirtamas and

Maharani Groups have collaborated with the Kuok Group.113 Possibly Kuok Oils & Grains Pte. Ltd. is involved in export sales of these groups.

• Wilmar Group: Wilmar Holdings in Singapore is owned by Archer Daniels Midland

(United States), Cofco (China), Martua Sitorus (Indonesia) and Kuok Khoon Hong (Malaysia, member of the Kuok family which controls the Kuok group).114 Wilmar Holdings owns a number of oil palm plantations and several palm oil mills in Indonesia. Wilmar claims to be the largest exporter of palm oil, palm kernel, palm kernel expeller and related products in Indonesia. The company buys crude palm oil from its own plantations and from a number of other plantations in Indonesia.115 Indonesian oil palm plantation companies selling palm oil to the Wilmar Group are: 116

• PT Astra Agro Lestari Astra Agro Group117 • PT Cirenti Subur Dutapalma Group • PT Dutapalma Nusantara Dutapalma Group • PT Intibenua Perkasa • PT Ivo Mas Tunggal Sinar Mas Group • PT Johan Sentosa Dutapalma Group • PT Kencana Amal Tani Dutapalma Group • PT Kantor Pemasaran Bersama Perkebunan Nusantara Group • PT Musim Mas Musim Mas Group • PT Permata Hijau Sawit • PT PP London Sumatra Indonesia Napan & Risjadson Groups118 • PT Sari Lembah Subur Astra Agro Group • PT Sawitra Oil Grains Salim Group119 • PT Tunggal Perkasa Astra Agro Group

PNG oil palm plantation companies from which Wilmar is buying crude oil palm products include:

• New Britain Palm Oil Johor Group120

The CPO sold by these companies to the Wilmar Group could be exported as such to overseas markets by Wilmar, or could be refined in Wilmar’s refineries in Indonesia and Malaysia (see paragraph 2.3.3) and then exported. Wilmar Holdings has a subsidiary in the Netherlands, Wilmar Europe B.V., which probably acts as its sales agent in Europe. 121 Probably Wilmar Holdings supplies ADM trading companies and refineries in the Netherlands, Germany and the United Kingdom.

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2.3.2 Palm kernel crushing plants

Almost all Indonesian palm kernels are processed in palm kernel crushing plants in Indonesia, as is shown in Table 19. Less than 1% is exported, mostly to Malaysia.

Table 19 Indonesian crushing and export of palm kernels (in 1,000 MT) 122

Year 1995 1996 1997 1998 1999 2000 2001 2002 Growth

Crushings 1,240 1,478 1,651 1,815 2,105

Exports 3 8 8 2 6

The following information is available on the companies owning palm kernel crushing plants in Indonesia: • Bolloré Group: PT Socfindo operates a palm kernel crushing plant with a capacity of 4.4

tons per hour (30,000 tons per year). 123 • Cahaya Kalbar Group: PT Cahaya Kalbar operates a palm kernel crushing plant in West

Kalimantan. Cahaya Kalbar does not own plantations and buys all palm kernels from outside plantation groups.124

• Dutapalma Group: PT Taluk Kuantan Perkasa operates a palm kernel crushing plant in

Dumai, Riau, with a capacity of 600 tonnes palm kernels per day (210,000 tons per year).125

• Salim Group: PT Bitung Menado Oil operates a palm kernel crushing plant with an

annual capacity of 45,000 tons in Sulawesi.126 • Sinar Mas Group: Golden Agri-Resources Ltd. operates four palm kernel crushing mills

with an annual capacity of 356,400 tonnes. One of these crushing mills is on the Bangka Islands.127

• Wilmar Group: Wilmar Holdings Ltd. operates four palm kernel crushing facilities in

Indonesia and Malaysia with total palm kernel crushing capacity of 800,000 tons per annum. Wilmar claims to be the largest palm kernel crusher in Indonesia, as well as the largest exporter of palm kernel oil and palm kernel expeller and related products in Indonesia. The company buys palm kernels from its own plantations in Indonesia and from a number of other plantations in Indonesia (see paragraph 2.3.1).128

2.3.3 Palm oil and palm kernel oil refineries

As shown in Table 20 the largest part of the Indonesian CPO production is refined domestically, either for domestic usage or for export as refined palm oil. The refined volume increased by 95% since 1995, almost equalling total production growth. At present 69% of total Indonesian palm oil production is refined, down from 86% in 1999. Fluctuations in the refining percentages are probably caused by: • Changes in Indonesian export taxes (see Table 14); • Changes in import taxes in important export markets, especially when the import of

refined palm oil products is levied higher than the import of crude palm oil (which is the case in the European Union - see Table 25);

• Investments needed to bring new refining capacity on stream.

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The existing import levies of the European Union, which try to encourage refining within the EU, clearly influence Indonesian palm oil export patterns. Of total Indonesian palm oil exports in 2002, 44% consisted of crude palm oil and 56% of refined palm oil. But of Indonesian palm oil exports to the European Union 65% consisted of crude palm oil and only 35% of refined palm oil.129

Table 20 Indonesian production and refining of palm oil (in 1,000 MT) 130

Year 1995 1996 1997 1998 1999 2000 2001 2002 Growth

CPO production 4,220 4,540 5,380 5,361 6,250 7,050 8,030 9,020 114%

Palm oil refining 3,180 3,530 3,932 4,466 5,385 5,232 6,181 6,215 95%

Refining % 75% 78% 73% 83% 86% 74% 77% 69%

In February 1999, Indonesia housed 57 palm oil refining companies, with a combined annual capacity of 7.9 million tonnes.131 These refineries belonged to a limited number of business groups, as indicated in Table 21.

Table 21 Palm oil refineries in Indonesia 132


Plantation ownership

Annual capacity (MT) Share

Musim Mas Indonesia Yes 1,600,000 20.4%

Wilmar United States / China Yes 1,562,250 19.9%

Hasil Karsa Indonesia Yes 991,675 12.6%

Sinar Mas Indonesia Yes 911,200 11.6%

Salim Indonesia Yes 570,000 7.3%

Berlian Eka Sakti Tangguh Indonesia No 430,500 5.5%

Sungai Budi Indonesia Yes 420,000 5.3%

Perkebunan Nusantara Indonesia Yes 385,355 4.9%

Raja Garuda Mas Indonesia Yes 337,280 4.3%

Others 647,112 8.2%

Total 7,855,372 100%

As is shown in Table 21, nine business groups accounted for more than 90% of the Indonesian palm oil refining capacity. Most of these groups are Indonesian-owned, only one (Wilmar) is a joint-venture by the big American commodity trader ADM and the Chinese company Cofco. Seven refinery groups own oil palm plantations themselves (see Table 18), but they generally also buy CPO from other oil palm plantations. The other two refinery groups rely fully on CPO bought externally. The following information is available regarding the production and export of refined palm oil and palm kernel oil by these refinery groups. (Refining capacities provided here are in some cases much higher than in Table 21, but it is unclear if this is caused by take-overs or expansions). • Bakrie Group: PT Kilang Vecolina operates a palm oil refinery in West Java with a

capacity of 200 tonnes CPO per day (70,000 tonnes per year).133

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• Bolloré Group: PT Socfindo operates a palm oil refinery with a capacity of 320 tonnes CPO per day (112,000 tonnes per year). 134

• Cahaya Kalbar Group: The Cahaya Kalbar Group operates two edible oil refineries in

West Java and one in West Kalimantan.135 • Cisadane Raya Group: PT Cisadane Raya Chemicals operates a palm oil refinery with

an annual capacity of 180,000 tonnes in Jakarta. The production is sold domestically.136 • Dutapalma Group: PT Darmex Oil & Fats operates a palm oil refinery in Bekasi, West

Java, with a capacity of 1,300 tonnes CPO per day (460,000 tonnes per year).137 For details on foreign customers of the Dutapalma Group see paragraph 2.3.1.

• Musim Mas Group: The Musim Mas Group operates five palm oil refineries with a

combined capacity of 8,000 tonnes CPO per day (2.8 million tonnes per year). These refineries are:138

• PT Musim Mas Belawan North Sumatra • ? Tanjung Mulia North Sumatra • ? Dumai Sumatra • PT Bina Karya Prima Jakarta Java • ? Surabaya Java

The Musim Mas Group owns its own oil palm plantations, but also buys CPO from other companies. Oil palm plantation companies supplying CPO to Musim Mas are:

• PT Astra Agro Lestari Astra Agro Group139 • PT PP London Sumatra Indonesia Napan & Risjadson Groups140

The Musim Mas refinery is located near the Belawan port in North Sumatra and has its own bulk tank terminal and ships to export products in liquid bulk.141 The Musim Mas Group claims to have exported 1.5 million tonnes of crude and refined palm oil and palm kernel oil in 2002, which amounts to more then 20% of Indonesia’s total exports (see Table 15 and Table 16). Export marketing is the responsibility of its Malaysian subsidiary Musim Mastika (Malaysia) Bhd.142 Foreign customers buying crude or refined oil palm products from the Musim Mas Group include: 143

• Cargill United States • Kumpulan Guthrie Malaysia • Kuok Singapore • Wilmar Singapore

• Raja Garuda Mas Group: PT Asian Agri operates three palm oil refineries in Indonesia,

located in North Sumatra, Riau and Jakarta. These refineries have a combined capacity of over 780,000 tonnes of CPO per annum. 144

• Salim Group: PT Intiboga Sejahtera operates two palm oil refineries in Jakarta and

Surabaya with a refining capacity of 2,100 tons CPO (735,000 tons per year).145 For details on foreign customers of the Salim Group see paragraph 2.3.1.

• Sinar Mas Group: Golden Agri-Resources Ltd. operates two palm oil refineries with an

annual refining capacity of 840,000 tons.146 For details on foreign customers of the Sinar Mas Group see paragraph 2.3.1.

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• Sungai Budi Group: PT Tunas Baru Lampung operates three palm oil and coconut oil

refineries in Lampung, South Sumatera and West Java.147 For details on foreign customers of the Sungai Budi Group see paragraph 2.3.1.

• Wilmar Group: Wilmar Holdings Ltd. operates four palm oil refineries in Indonesia and

one in Malaysia with total palm oil refining capacity of 3.3 million tons per annum. The Indonesian refineries are:

• PT Bukit Kapur Reksa Riau • PT Karya Prajona Nelayan North Sumatra • PT Multimas Nabati Asahan North Sumatra • PT Sinar Alam Permai South Sumatra

Wilmar claims to be the largest palm oil refiner as well as the largest exporter of palm oil, palm kernel oil and related products in Indonesia. The company buys crude palm oil from its own plantations and from a number of other plantations in Indonesia.148 For details see paragraph 2.3.1.

Apart from refined palm oil and refined palm kernel oil, many of the refinery groups mentioned in Table 21 also produce and export further processed products, such as margarine, shortenings and soap. As these exports are mainly destined for the Asian market, we will not elaborate on them here.

2.3.4 Manufacturers of margarine, shortenings and fats

Indonesia houses a limited number of manufacturers of margarine, shortenings and fats. The following information is available on these companies and their exporting activities: • Cahaya Kalbar Group: PT Cahaya Kalbar Tbk. is producing a wide range of speciality

fats such as cocoa butter and cocoa powder, cocoa butter replacer fats, confectionery fats, coating fats and filling fats. Its products are used in chocolate and cocoa confectioneries, bakeries, ice cream products, and general food related products. These products are mainly made from cocoa, palm oil, palm kernel oil, coconut oil, shea oil, tengkawang fat and ilipe fat. Cahaya Kalbar does not own oil palm plantations itself, but the company owns a palm kernel crushing plant and three edible oil refineries.149 Cahaya Kalbar exports its products worldwide, including to the Netherlands, Sweden and England. Foreign customers buying speciality fats from the Cahaya Kalbar Group include:150

• Britannia Food Ingredients United Kingdom • Juremont Australia • Theobroma The Netherlands • Walter Rau Germany

• Salim Group: PT Intiboga Sejahtera, a subsidiary of the large food company PT Indofood

Sukses Makmur, has an annual margarine production capacity of 226,200 tons in Jakarta. Consumer margarine is sold under the brand names Simas, Palmia and Amanda. Industrial margarines and shortenings are sold under the brand names Palmia, Royal Palmia, Queen’s, Simas, Vitamas, Amanda, Malinda and Delima. 151 PT Indofood Sukses Makmur controls 66 percent of the Indonesian margarine and fats market. Around 12 percent of Indofood’s total sales are exported, to a total of 36 countries. PT Indofood Sukses Makmur is without doubt the largest Indonesian consumer of CPO. But only 45 percent of its CPO need is sourced from its own oil palm plantations.152

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• Sinar Mas Group: The oil palm plantation company PT SMART also produces margarine

speciality fats as cacao butter substitutes, toffee fat, coating fat and butter substitute. The output is probably largely sold on the domestic market.153

• Wilmar Group: PT Karya Putrakreasi Nusantara produces speciality fats. 154

2.3.5 Oleochemical companies

Oleochemical production in Indonesia amounted to 712,012 tons in 2001. Fatty acid production accounted for 67% of the total production. Fatty alcohol came second, followed by stearic acid and glycerol (see paragraph 1.2.6). The usage of palm oil and palm kernel oil by the oleochemical industry can be estimated at 783,000 tons, which equals 10% of the Indonesian palm oil and palm kernel oil production in 2001 (see Table 11 and Table 12).155 Indonesian oleochemical exports amounted to 541,972 tons in 2001, or 76% of production output. Among the most important export destinations were Spain (83,012 tons), the Netherlands (40,709 tons) and Germany (9,680 tons). 156 Indonesia houses a number of oleochemical companies as indicated in Table 22. These companies mainly belong to business groups owning oil palm plantations (see Table 18) and/or palm oil refineries (see Table 21).

Table 22 Oleochemical companies in Indonesia


Plantation ownership

Production capacity (tons/yr)

Aribhawana Utama Indonesia No 35,000

Bumi Flora & Parasawita Indonesia No 54,000

Cisadane Raya Indonesia Yes 120,000

Ecogreen Indonesia No 102,500

Imora Indonesia No 157,000

Musim Mas Indonesia Yes 180,000

Sinar Mas Indonesia / Japan Yes 88,000

Total 736,500

The following information is available on the exporting activities of these oleochemical companies: • Bumi Flora & Parasawita Groups: PT Flora Sawita Chemindo owns an oleochemical

production facility in Medan, North Sumatra, producing palm oil fatty acids and glycerine, as well as coconut and other vegetable derived acids. Annual production capacity amounts to 54,000 tonnes. Palm oil is supplied by its own plantations (see Table 18).157

• Cisadane Raya Group: PT Cisadane Raya Chemicals operates an oleochemical plant

with an annual capacity of 120,000 tonnes in Jakarta, including 70,000 tons of fatty acid, 15,000 tons of glycerine, 10,000 tons of distilled fatty acid and 25,000 tons of bar soap. As inputs palm oil, palm kernel oil and coconut oil are used. The production is sold domestically and abroad. Palm oil is supplied by its own plantations and by plantations of the Bakrie Group (see Table 18).158

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• Ecogreen Group: Ecogreen Oleochemicals is one of the worlds largest producers of naturally fatty alcohols. The company owns plants in Batam (PT Batamas Megah) and Medan (PT Prima Inti Perkasa), as well as in Germany. The two Indonesian plants of Ecogreen have a combined annual capacity to produce 90,000 tons of fatty alcohols and 12,500 tons of glycerine. The main feedstock is palm kernel oil, sometimes supplemented with coconut oil. This is supplied by plantations belonging to the Salim Group (see Table 18). Ecogreen Oleochemicals exports 95% of its products worldwide, 20% of which goes to Europe. The company has a marketing office in Germany and long term lease storage facilities in Rotterdam.159 Ecogreen Oleochemicals was formerly known as Salim Oleochemicals and was part of the Salim Group. As part of the Salim Group’s debt restructuring, the company was transferred to the Indonesian Bank Restructuring Agency in 1999. In November 2000, IBRA sold the company to an international investment consortium comprising Bhakti Investama (Indonesia) and Asia Debt Managers (Hong Kong) for a sum of US$ 131 million.160 At present Ecogreen is planning to expand fatty alcohol production with 20,000 tons per year and to build a fatty acid plant in Medan with an annual capacity of 60,000 tons. The International Finance Corporation is currently considering a US$ 30 million loan to finance this expansion project.161

• Imora Group: PT Sumi Asih is one of the world's largest manufacturers of natural fatty

acids and their derivatives from palm oil, palm kernel oil and coconut oil. Products include fractionated fatty acids, stearic acids, hydrogenated coconut fatty acids and glycerine. The plant in Jakarta has an annual production capacity of 90,000 tonnes fatty acids, 15,000 tons of glycerin and 32,000 tons of stearic acid (stabilizer) and metallic soap.162 Sumi Asih also has a joint-venture with the German company Goldschmidt (a subsidiary of Degussa) producing betain, a shampoo additive, with an annual capacity of 20,000 tons.163 The export sales agent of Sumi Asih is Derifats Chemicals Sdn. Bhd. in Malaysia.164 In Europe Sumi Asih sells its products via the German trader Corichem AG. 165

• Musim Mas Group: The Musim Mas Group owns an oleochemical plant in Medan, North

Sumatra with an annual capacity of 60,000 tonnes of soap noodles and 120,000 tonnes of fatty acids and glycerine (to be expanded to 240,000 tonnes in 2004). Export marketing is the responsibility of its Malaysian subsidiary Musim Mastika (Malaysia).166 Musim Mas sells soap noodles in Europe via the German trader Corichem AG. 167

• Sinar Mas Group: PT Sinar Oleochemical International (SOCI) is a joint-venture between

the Indonesian oil palm plantation company PT SMART (40%, see paragraph 2.3.1) and four Japanese companies: NOF, Shiseido, Marubeni and Hitachi Zosen. SOCI produces glycerine and fatty acids from palm oil and palm kernel oil, supplied by plantations of the Sinar Mas Group (see Table 18). The plant, located in Medan, has an annual capacity of 88,000 tonnes. The marketing office for export sales is Marubeni Chemical Asia Pacific Pte. Ltd. in Singapore.168

2.3.6 Ports, storage and transport companies

Indonesian oil palm products are exported through a number of ports throughout Indonesia, as indicated in Table 23.

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Table 23 Indonesian export ports for oil palm products

Port Province

Belawan North Sumatra

Cirebon West Java

Dumai Riau

Pulau Laut South-east Kalimantan

The following information is available on palm oil transport and storage companies operating in/from these ports: • Port of Cirebon: The port of Cirebon houses seven vegetable oil tanks with a total

storage capacity of 10,300 tons. It is likely that these tanks are mainly used for transporting CPO to refineries in Java, as well as for the export of refined oil palm products. The tanks are operated in cooperation with the port authority and:

• PT Marga Tulus ? • PT Inti Boga Sejahtera Salim Group • PT SMART Sinar Mas Group • PT Bukit Kapur Reksa Wilmar Group

New storage facilities are being built by PT Sawit Tunggal Artha Raya and PT Cahaya Ratu Berlian.169

• Perkebunan Nusantara Group: The main CPO storage company in the Belawan port is

PT Deli Tama Indonesia, which owns 68 reservoir tanks for CPO and derivative products. The company, which is part of the state-owned Perkebunan Nusantara Group, has a storage capacity of 115,000 tons. PT Deli Tama Indonesia collects and distributes CPO produced by Perkebunan Nusantara plantation companies in North Sumatra, West Sumatra, Lampung and in part of Java.170 In the fall of 1999 some Indonesian CPO-shipments in the port of Rotterdam (The Netherlands) were found to be contaminated with diesel. This CPO came from the storage tanks of PT Deli Tama Indonesia, which blamed its clients. Among these were:171

• PT Bert ? • PT PP London Sumatra Indonesia Napan & Risjadson Groups • PT Musim Mas Musim Mas Group • PT Prima Paku Indah ? • PT Salim Oil Salim Group • PT SMART Sinar Mas Group

• Belawan Tanki Indonesia: An important palm oil tank storage company in the Belawan

port is PT Belawan Tanki Indonesia. Capacity is unknown. The company has the following clients:172

• PT Asianagro Agungjaya Raja Garuda Mas Group • PT Astra Agro Lestari Astra Agro Group • PT Berlian Eka Sakti Tangguh Berlian Eka Group • PT Bukit Kapur Reksa Wilmar Group • PT Bunge Agribusiness Indonesia Bunge Group • PT Cakra Sapta Pratama • PT Cargill Indonesia Cargill Group

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• PT Ecogreen Oleochemicals Ecogreen Group • PT Gunung Melayu Raja Garuda Mas & Salim Groups • PT Hari Sawit Jaya Raja Garuda Mas Group • PT Indah Pontjan • PT Indo Sepadan Jaya • PT Inti Indosawit Subur Raja Garuda Mas & Salim Groups • PT Marintan Jaya • PT Pacific Indomas • PT Palm Trimitra Indotama • PT Pati Sari • PT Perkasa Jaya • PT Permata Hijau Sawit • PT PP London Sumatera Indonesia Napan & Risjadson Groups • PT Sinar Fadillah Jaya • PT Singamas Jaya Perdana • PT Supra Matra Abadi Raja Garuda Mas Group • PT Usaha Inti Padang • Ud Bintang Terang • Ud Kresindo • Ud Saudara Jaya • Ud Serba Guna

Figure 21. Storage facilities PT Belawan Tanki Indonesia

• Prima Palm Indah: Another palm oil tank storage company in the Belawan port is PT Prima Palm Indah. One of its customers is PT PP London Sumatera Indonesia (Napan & Risjadson Groups).173

• Salim Group: PT Sawitra Oil Grains owns edible oil storage tanks with a total capacity of

100,000 tons in Jakarta, Belawan and Cirebon.174

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Chapter 3 The European Union market for oil palm products

3.1 Usage of oil palm products in the European Union

3.1.1 EU palm oil imports

Table 24 gives an overview of the countries of origin of the palm oil imports into the European Union. Palm oil imports into the EU increased by 92% since 1995 to 3.34 million tonnes in 2002, equivalent to 13% of global palm oil usage.

Table 24 Palm oil imports into the EU (in 1,000 MT) 175


Malaysia 479 1,015 1,440 1,482 1,790 1,869 290% 47%

Indonesia 878 905 1,095 1,430 1,338 1,572 79% 40%

Papua New Guinea 239 330 352 341 367 346 45% 9%

Other countries 142 169 132 87 98 158 11% 4%

Total 1,738 2,419 3,019 3,340 3,593 3,945 127% 100%

Indonesian palm oil imports into the European Union showed a growth of 63% since 1995, nevertheless its market share declined from 50% to 43%.176 The main reason for this was the discovery in the fall of 1999 of some Indonesian diesel-contaminated CPO-shipments in the port of Rotterdam (The Netherlands). This affair seriously hampered imports at the end of 1999 and the beginning of 2000. Some buyers switched to other suppliers, from which they continued buying after attention to the affair faded.177 Malaysia clearly profited, trebling its palm oil exports to the EU over the past seven years. The Malaysian market share is now 44%, slightly larger than the Indonesian market share (43%). Imports from Papua New Guinea are only growing slowly and now have a market share of 10%. Other producing countries do not play a significant role on the EU market. This is despite the fact that most other palm oil producing countries have preferential access to the EU-market, compared with Indonesia and Malaysia. EU import tariffs applicable to some of the main palm oil producing countries are shown in Table 25.

Table 25 EU import tariffs for palm oil products (in %) 178

Product / Country Indonesia Malaysia

Papua New Guinea, Ivory Coast Nigeria, Ecuador, Colombia

Thailand Brazil

Crude palm oil 3.8% 0% 0%

Refined palm oil (olein) 9.0% 0% 3.1%

Stearin 10.9% 0% 3.8%

Among the main palm oil producing countries (see Table 3), the normal EU import tariffs only seem to apply to Indonesia and Malaysia. Based upon the Cotonou Treaty (formerly Lomé Treaty) tropical oil exports from the ACP-countries (including Papua New Guinea, Ivory Coast, Cameroon, Nigeria and the Solomon Islands) to the EU are exempt from import tariffs.

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Within the Generalised System of Preferences the EU also imposes reduced import tariffs for a large number of other oil palm producing countries. Palm oil exports to the EU from most countries in Latin America (Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Peru and Venezuela.) are exempt from import tariffs to reward them for their fight against drugs. Palm oil exports from a large number of other countries, including Thailand and Brazil, are levied with a reduced tariff. 179

Table 26 Indonesian palm oil imports into the EU (in 1,000 MT) 180


Netherlands 258.3 391.6 387.5 556.5 472.9 515.7 100% 34%

Germany 188.6 236.3 267.7 347.0 276.4 357.8 90% 23%

United Kingdom 150.2 120.7 118.0 181.4 180.3 214.0 42% 14%

Spain 60.0 95.6 144.4 158.6 155.2 152.1 154% 10%

Italy 107.5 23.3 46.9 31.3 60.4 133.0 24% 9%

France 3.2 10.6 58.5 82.5 77.3 77.5 2322% 5%

Belgium/Luxemburg 77.3 19.1 45.1 40.4 57.7 29.0 -62% 2%

Greece 4.3 5.5 12.5 12.5 13.4 21.5 400% 1%

Denmark 16.1 0.2 5.7 11.3 13.8 17.7 10% 1%

Portugal 8.8 1.8 8.8 8.1 10.5 13.2 50% 1%

Finland 0.0 0.0 0.0 0.0 0.0 3.7 100% 0%

Ireland 1.6 0.0 0.0 0.0 0.0 3.4 113% 0%

Sweden 1.5 0.2 0.0 0.0 0.0 0.0 -100% 0%

Austria 0.3 0.0 0.0 0.0 0.0 0.0 -100% 0%

Total 878 905 1,095 1,430 1,318 1,539 75% 100%

As is shown in Table 26, the Netherlands is the most important market in the European Union for Indonesian palm oil. Dutch oil palm imports increased by 115% since 1995 and its market share has now reached 39%. However, a large part of these Dutch oil palm imports are re-exported, mostly to other EU-countries (see paragraph 4.1.1). Actual Indonesian palm oil imports of some other EU-countries are therefore higher than shown in Table 26. Other major EU-markets for Indonesian palm oil are Germany (24% of total EU-imports) and the United Kingdom. Runners up showing strong growth figures are Spain (11%) and France (6%). Other EU-markets are not important or stopped all (direct) palm oil imports from Indonesia. Of total Indonesian palm oil exports to the European Union 65% consisted of crude palm oil and 35% of refined palm oil.181

3.1.2 EU palm kernel oil imports

Table 27 gives an overview of the countries of origin of the palm kernel oil (PKO) imports into the European Union. PKO imports into the EU increased by 81% since 1995 to 568,000 tonnes in 2002, equivalent to 19% of global PKO usage (see table 1.3).

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Table 27 PKO imports in the EU by country of origin (in 1,000 MT) 182


Malaysia 75 84 83 102 111 100 33% 16%

Indonesia 208 340 327 436 429 452 117% 71%

Papua New Guinea 13 25 23 24 23 18 41% 3%

Other countries 18 35 9 6 52 66 267% 10%

Total 314 484 442 568 615 636 103% 100%

With a market share of 77%, Indonesia is much more dominant in the European PKO market than it is in the European palm oil market (43%, see Table 24). This is mainly caused by the fact that Malaysia (18% market share) is processing most of its palm kernel oil production domestically in its oleochemical industry.

Table 28 Indonesian PKO imports into the EU (in 1,000 MT) 183


Germany 85.5 93.1 148.4 151.9 164.2 247.5 189% 57%

Netherlands 40.2 80.8 99.2 78.5 48.4 49.4 23% 11%

Belgium/Luxemburg 13.4 13.3 7.5 34.5 28.1 36.5 172% 8%

United Kingdom 15.0 19.2 17.1 16.5 34.9 36.2 141% 8%

Spain 23.8 21.5 19.2 30.8 29.6 32.7 37% 7%

Italy 15.6 9.0 12.8 13.6 13.3 17.5 12% 4%

France 7.0 7.3 9.5 7.8 4.3 14.0 100% 3%

Portugal 0.0 1.0 0.6 0.1 1.6 1.7 >100% 0%

Greece 0.2 1.6 1.2 2.2 2.2 0.9 350% 0%

Denmark 5.7 6.7 4.5 4.5 0.0 0.0 -100% 0%

Sweden 1.5 0.0 0.0 0.0 0.0 0.0 -100% 0%

Total 208 254 320 340 327 436 110% 100%

As shown in Table 28, Germany is the most important EU market for Indonesian palm kern oil by far, with a share of 57% of total EU imports. The Netherlands (11%), Belgium (8%) the United Kingdom (8%) and Spain (7%) follow behind.

3.1.3 Edible oils usage in the European Union

Total edible oil usage in the European Union increased by 20% since 1995, as is shown in Table 29. Palm oil usage showed a growth of 90%, which is more than that of any other edible oil. Palm oil now has a 17% market share and is the second most consumed edible oil in the EU. Palm kernel oil usage in the EU increased by 72% since 1995, giving PKO a 3% share of the EU edible oils market.

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Table 29 Usage of edible oils in the EU (in 1,000 MT) 184


Rapeseed oil 2,160 2,619 2,988 3,291 3,373 3,356 55% 18%

Palm oil 1,689 2,051 2,168 2,368 2,855 3,211 90% 17%

Soybean oil 2,029 1,876 1,798 1,717 1,979 2,094 3% 11%

Olive oil 1,484 1,732 1,810 1,893 1,948 1,950 31% 10%

Sunflower oil 1,957 2,092 2,132 2,101 2,032 1,922 -2% 10%

Butter (as fat) 1,425 1,505 1,543 1,542 1,535 1,510 6% 8%

Lard 1,295 1,395 1,449 1,402 1,370 1,400 8% 7%

Palm kernel oil 317 385 501 465 430 545 72% 3%

Other edible oils 3,293 3,189 2,852 2,991 2,953 2,805 -15% 15%

Total 15,650 16,844 17,241 17,770 18,475 18,793 20% 100%

3.1.4 EU palm kernel meal imports

Table 30 gives an overview of the countries of origin of the palm kernel meal (PKM) imports into the European Union. Since 1995 PKM imports into the EU have increased by 22% to 2.4 million tonnes, equalling 64% of global PKM usage (see Table 7).

Table 30 PKM imports in the EU by country of origin (in 1,000 MT) 185


Malaysia 1,387 1,294 1,288 1,330 1,314 1,360 -2% 58%

Indonesia 351 504 719 756 725 887 152% 38%

Nigeria 162 168 182 132 101 67 -59% 3%

Other countries 35 22 37 45 53 46 31% 2%

Total 1,935 1,988 2,226 2,263 2,193 2,360 22% 100%

With a market share of 58%, Malaysia is the most important supplier on the European PKM market, but the growth in volume of Malaysian PKM supplies to the EU is stagnant. As PKM imports from Nigeria are declining and other supply countries only play a minimal role, the growth in EU PKM imports over the past seven years is accounted for solely by the growth in Indonesian exports. Indonesia has increased its share of the EU PKM market from 18% to 38%.

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Table 31 Indonesian PKM imports into the EU (in 1,000 MT) 186


Netherlands 159.1 245.0 317.2 370.0 282.5 411.8 159% 46%

Germany 100.4 125.0 236.7 199.0 222.7 196.5 96% 22%

United Kingdom 33.8 77.8 78.1 74.7 66.5 85.8 154% 10%

Portugal 0.0 0.0 0.0 7.5 31.0 40.2 >100% 5%

Ireland 33.5 29.8 44.8 57.9 12.1 34.2 2% 4%

France 0.3 6.2 5.0 12.6 27.9 31.1 >1000% 4%

Sweden 2.2 3.5 7.3 15.8 13.1 24.7 >1000% 3%

Spain 11.1 3.7 23.4 5.0 35.2 24.2 118% 3%

Italy 6.2 2.9 0.0 10.3 8.9 21.1 240% 2%

Belgium/Luxemburg 4.3 10.3 6.0 2.8 25.1 17.4 305% 2%

Total 351 504 719 756 725 887 152% 100%

As shown in Table 31, The Netherlands are the most important EU market for Indonesian palm kernel oil by far, with a share of 46% of total EU imports. However, a large part of these Dutch PKM imports are exported again, mostly to other EU-countries (see paragraph 4.1.3). Actual Indonesian PKM imports of some other EU-countries are therefore higher than shown in Table 31. Other important PKM markets in the EU are Germany (22%) and the United Kingdom (10%). Portugal, France and Sweden are runners-up.

3.2 Sectors in the EU oil palm production chain

3.2.1 International edible oil trading sector

Obviously, the international traders in (bulk) edible oil products play a principal role in bringing oil palm products from Indonesia to Europe. Different from other stages in the supply chain, there are very many companies involved in this stage and presenting a full overview is difficult. Generally, four types of traders are involved: • European trading subsidiaries of Indonesian and Malaysian oil palm plantation companies

or refineries. Some of the Indonesian producers and refineries have set up European trading subsidiaries, which can buy oil palm products from their sister companies as well as from other producers. Examples are Kumpulan Guthrie in the UK, Perkebunan Nusantara and Golden Hope in Germany and Johor in the Netherlands.

• The trading arms of the major European edible oil refining companies. To supply their European refineries and crushing plants, these companies set up trading companies buying palm oil, palm kernel oil and palm kernels in Indonesia. The two most important examples are the American giants Cargill and ADM, which source oil palm products from their own plantations and refineries in Indonesia but also from other producers. Smaller examples are the refineries of Soctek (Netherlands), Golden Hope (Netherlands), Karlshamns (Sweden) and Aarhus (UK).

• Procurement divisions of major European food, detergent and chemical companies. These companies often procure oil palm products directly from producers in Indonesia, either in refined form (which can be used directly) or in crude from (which probably is refined on a contract basis). Major examples are Unilever, Henkel, Migros.

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• Independent edible oil traders and brokers. Apart from the three types of integrated traders, a large number of independent edible oil traders are active in the sector. They sell to European refining and processing industries which either lack a procurement division or have a temporary demand exceeding their regular supply. Most of these independent traders and brokers are fairly small, with the exception of Safic-Alcan (France).

3.2.2 Edible oil transport and storage sector

Oil palm products are transported from Indonesia to Europe by edible oil bulk carriers, chartered by the traders mentioned in paragraph 3.2.1. The carriers are discharged (and sometimes temporarily stored) in various European ports, among which Rotterdam is the most important. From these ports the oil palm products are transported by ship and truck to refineries and processing industries. Important transport and storage companies involved in these activities are C.Koole (Netherlands), Vopak (Netherlands) and ITC Holland (Netherlands).

3.2.3 Oilseed crushing and refining industry

In the European oil palm product chain the European oilseed crushing industry is not of high importance, as non-crushed palm kernels are hardly imported in the European Union. But edible oil refineries play a very important role, as almost all European imports of palm oil and palm kernel oil are processed by European edible oil refineries. Of total Indonesian palm oil exports to the European Union 65% consisted of crude palm oil and 35% of refined palm oil.187 Apart from refining all imports of crude palm oil and palm kernel oil, imports of refined palm oil and palm kernel oil are often refined again by European edible oil refineries to remove remaining or new impurities. Oil palm products are often shipped to Europe using tankers and shore facilities which do not meet the standards of a European food manufacturer. 188 The most important edible oil refining companies in Europe, ranked by market share in 1998, were:189

• Cargill United States • ADM United States • Cereol, which is now part of Bunge United States • Unilever United Kingdom / Netherlands

But since then Unilever has sold its edible oil refineries in the Netherlands (to Golden Hope), United Kingdom (to ADM) and Germany. The dominance of the three American refineries therefore has increased since 1998. The European organisations for the oilseed crushing and refining industries are organized in FEDIOL (EC Oilseed Crushers’ and Oil Processors’ Federation).

3.2.4 Oil packing sector

A small part of the European palm oil imports is packed in bottles or small containers directly after the refining stage. These are sold to consumers and the foodservice markets both inside and outside Europe for cooking and frying. The most important oil packing companies in Europe, ranked by market share in 1998, were:190

• Lesieur, which is now part of Bunge United States • AOP, which is now part of Cargill United States • Unilever United Kingdom / Netherlands • Pura Foods, which is now part of ADM United States • Brökelmann & Co. Germany

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These large oil packers - which do not all sell palm oil - generally own edible oil refineries as well. But on a national level a lot of smaller companies without refining capacity are active on the oil packing market as well. They buy palm oil in bulk from traders or refineries, pack it and sell it.

3.2.5 Margarine and spreads industry

Probably the most important palm oil consuming sector in the European Union is the margarine and spreads industry. According to the International Margarine Association of the Countries of Europe (IMACE), which regroups 21 national margarine associations, the total production of margarine and fat spreads in the EU amounted to 2,191,301 tonnes in 2001. The four biggest producing countries are Germany (573,973 tonnes), United Kingdom (409,200 tonnes), Belgium (278,789 tonnes) and the Netherlands (262,006 tonnes).191

3.2.6 Biscuit, chocolate and confectionery industry

The European biscuit, chocolate and confectionery industry is an important consumer of palm oil and palm kernel oil. Palm oil is especially used on a large scale in biscuits, cakes and (fresh) pastry.192 Palm oil can also be used in chocolate and related products. After 27 years of negotiations, the European Union adopted a new Chocolate Directive in May 2000, which sets out rules for the ingredients and labelling of chocolate products. Chocolate with up to 5% of substitutes for cocoa butter can now officially be called chocolate all over the European Union. Apart from palm oil, illipe, sal, shea, kokum gurgi and mango kernel oils are permitted by the Chocolate Directive as substitutes for cocoa butter, as long as their usage is indicated properly on the label of the product.193 Chocolate producers had been lobbying for this for years. It was often assumed they were mainly interested in the cost reduction resulting from a substitution of expensive cacao butter by cheaper tropical oils. But in fact the price of Cocoa Butter Equivalents (CBEs) is only slightly lower, or sometimes even higher, than that of cacao butter. Most commonly, CBEs are the result of a specific blending of three tropical fats: shea nut butter, palm oil and illipe nut butter. Although the crude oils are cheaper than cocoa they all have to undergo significant processing and blending and this brings the prices of the blended CBEs closer to those of cocoa butter. 194 The main reason for the industry to lobby for allowing CBEs, was that the shelf life of chocolate bars would be increased. It prevents the formation of fat bloom, a white discoloration generated by heat. Fat bloom, common in summer and in warmer climates or resulting from temperature changes, is a major source of consumer complaints. Also, CBEs may improve fat stability, texture and gloss, as well as hardness and snap, especially in chocolate products with a high-milk content. 195 However, over the years, technical improvements in the chocolate production process reduced the importance of these technical arguments. When the Chocolate Directive finally came into force in August 2003, most producers of chocolate bars said that there would be no change to their current recipes. Cocoa constitutes only 10% to 15% of the total production costs and the price advantage would therefore not outweigh the disadvantage of loosing the label pure chocolate. Also, the Chocolate Directive is expected to bring down the price of cacao butter. 196 Sources within the industry therefore expect that the Chocolate Directive will most affect the makers of biscuits and chocolate-covered products since the incorporation of vegetable oils makes chocolate more pliable and sticky - key properties for such manufacturers.197

3.2.7 Snacks, chips and crisps industry

Large scale industrial frying in Europe and Asia is probably the largest application of palm oil.198

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3.2.8 Soap, detergents and cosmetics industries

Annually 2.2 million tons of surfactants are used in the European Union, mainly by the soap, detergents and cosmetics industries. Most of these surfactants are based upon fatty alcohols derived from lauric oils (palm kernel oil or coconut oil). Figure 22 shows how the usage of fatty alcohols in the EU is distributed by fields of application (I+I = industrial and institutional cleaning). 199

Figure 22. Surfactant usage in Europe

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Chapter 4 The market for oil palm products in the Netherlands

4.1 Import and export of oil palm products

4.1.1 Palm oil import and export figures

Palm oil imports into the Netherlands since 1995 increased by 151% to 1,113,000 tonnes, equalling 33% of total EU palm oil imports (see Table 24).

Table 32 Palm oil imports into the Netherlands by country (in 1,000 MT) 200


Malaysia 75.5 311.1 554.3 472.3 638.7 670.7 788% 53%

Indonesia 258.3 391.6 387.5 556.5 457.9 515.7 100% 41%

Papua New Guinea 53.4 40.7 32.2 18.6 22.1 16.8 -69% 1%

Ghana 0.0 2.0 2.0 1.6 1.5 0.7 >100% 0%

Ivory Coast 16.1 10.4 0.0 0.0 0.0 3.3 -80% 0%

Other countries 26.3 20.4 9.4 22.3 10.4 14.8 -44% 1%

Other EU-countries 13.2 33.3 35.2 41.7 16.6 33.0 150% 3%

Total 442.8 809.5 1,020.6 1,113.0 1,147.2 1,255.0 162% 100%

As Table 32 shows, Indonesian palm oil imports into the Netherlands increased by 115% since 1995 and now have a 50% share of the Dutch market. Imports from Malaysia are growing faster however and Malaysia is not far behind with 42% market share. Other producing countries don’t play a significant role. Around 4% of Dutch oil palm imports is shipped from other EU countries. Dutch sources put total palm oil imports at 990,000 tonnes in 2001, only slightly less than the figure in Table 32 (1,020,600 tonnes). Of these imports, 608,000 tonnes is classified as crude palm oil, while 382,000 tonnes is classified as refined oil. 201 Around 50% of Dutch palm oil imports are exported again, mainly to other EU-countries. Actual palm oil usage in the Netherlands therefore amounted to 557,400 tonnes in 2002, equalling 17% of total EU palm oil imports (see table 3.2).

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Table 33 Palm oil exports from the Netherlands by country (in 1,000 MT) 202


Belgium 42.9 173.7 189.2 213.9 226.8 285.9 566% 42%

Germany 57.8 69.9 108.3 110.1 114.1 139.3 141% 20%

France 38.7 85.6 106.3 83.6 66.8 76.3 97% 11%

Italy 14.9 18.1 20.8 25.8 22.0 24.3 63% 4%

United Kingdom 16.1 26.5 16.5 17.6 25.5 11.2 -30% 2%

Sweden 1.1 11.8 4.9 8.1 5.3 2.0 82% 0%


Switzerland 0.4 1.0 1.4 3.2 0.8 1.8 350% 0%

Other non-EU countries 15.5 46.0 66.5 59.5 49.8 61.7 298% 9%

Total export 197.5 463.8 542.7 554.6 558.1 686.4 248% 100%

Domestic usage 231.3 357.6 477.9 557.4 575.1 585.6 153%

As is shown in Table 33, around 88% of palm oil exports from the Netherlands are to EU-countries. Within the EU, Belgium (39%), Germany (20%) and France (15%) are the most important markets to which palm oil is exported from the Netherlands. These palm oil exports are most likely to be originating from Indonesia and/or Malaysia (see Table 32), but no data are available on the origin of the palm oil exported from the Netherlands to specific countries.

4.1.2 PKO import and export figures

PKO imports into the Netherlands since 1995 increased by 15% to 85.5 tonnes in 2002, equivalent to 15% of total PKO imports into the EU (see Table 27). However, since 1999, imports have been decreasing.

Table 34 PKO imports into the Netherlands by country (in 1,000 MT) 203


Indonesia 40.2 78.5 48.4 49.4 60.8 95.5 138% 72%

Malaysia 26.0 33.6 25.0 32.3 32.5 33.1 27% 25%

Papua New Guinea 0.3 2.8 3.9 0.3 0.0 0.0 -100% 0%

Ivory Coast 4.6 4.6 0.7 0.0 0.0 0.0 -100% 0%

Other countries 3.1 3.7 1.8 3.5 1.5 3.5 13% 3%

Total 74.2 123.2 79.8 85.5 94.8 132.0 78% 100%

Indonesia’s market share on the Netherlands PKO market increased slightly in the past seven years to 58%. Malaysia accounts for 38% and other countries don’t play a role. The Netherlands also play an important role in re-export of PKO to other countries, as is shown in Table 35. Re-export increased by 55% since 1995 and now accounts for 43% of all PKO imports into the Netherlands. Domestic usage fluctuated strongly, more than doubling between 1995 and 1999 and more than halving since then. This fluctuation indicates that substitution with other edible oils takes place when market circumstances change. The contaminated diesel affair in 1999 possibly stimulated a substitution from palm oil to palm

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kernel oil. Dutch PKO usage now accounts for 8% of total PKO imports into the EU (see Table 27).

Table 35 PKO exports from the Netherlands by country (in 1,000 MT) 204


Germany 3.0 2.2 2.3 8.0 11.7 43.9 1363% 55%

United Kingdom 8.3 2.6 1.3 1.3 2.7 5.1 -39% 6%

France 1.7 3.5 3.7 2.5 1.7 3.1 82% 4%

Belgium 0.1 1.7 2.2 3.8 1.9 2.6 2500% 3%

Italy 0.5 2.4 2.3 2.2 1.9 1.6 220% 2%

Sweden 0.8 0.5 0.5 1.0 1.1 0.5 -38% 1%


Other non-EU countries 9.1 18.2 19.7 16.3 8.6 10.4 14% 13%

Total export 23.6 32.5 33.4 36.6 31.7 80.5 241% 100%

Domestic usage 57.6 90.7 49.4 46.9 63.1 51.5 -11%

About half of PKO re-exports from the Netherlands goes to EU-countries, of which Germany and Belgium are the most important. The other half is re-exported outside the EU. These PKO exports are most likely to originate from Indonesia and/or Malaysia (see Table 34), but no data are available on the origin of the palm oil exported from the Netherlands to specific countries.

4.1.3 PKM import and export figures

PKM imports into the Netherlands since 1996 increased by 38% to 1,073 tonnes in 2002, equivalent to 45% of total PKM imports into the EU (see Table 30).

Table 36 PKM imports into the Netherlands by country (in 1,000 MT) 205


Malaysia 597 587 563 624 729 899 51% 71%

Indonesia 159 370 283 412 444 333 110% 26%

Nigeria 9 11 8 1 1 0 -100% 0%

EU-countries 4 31 31 32 94 40 898% 3%

Other countries 7 1 6 4 0 1 -93% 0%

Total 776 1,000 890 1,073 1,267 1,273 64% 100%

Malaysia still dominates the Netherlands PKM market, but its market share has decreased from 77% to 58% in the past six years. Indonesian PKM imports increased by 159% since 1995, and now account for 38% of the Netherlands market. Nigeria has a negligible market share and re-exports from other EU-countries are small (3%).

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The Netherlands also play an important role in re-export of PKM to other countries, as is shown in Table 37. Re-exports increased by 235% since 1996 and now account for 25% of all PKM imports into the Netherlands. The increase of domestic usage was more modest, 16% since 1996. Domestic usage now accounts for 34% of total PKM imports into the EU (see Table 30).

Table 37 PKM exports from the Netherlands by country (in 1,000 MT) 206


Germany 27 164 162 171 233 263 872% 58%

Belgium 11 31 27 58 122 102 825% 23%

Sweden 23 11 21 18 45 50 116% 11%

United Kingdom 1 2 3 7 6 20 1840% 4%

France 7 3 1 4 2 7 -6% 1%

Other EU-countries 11 5 10 6 12 10 -11% 2%

Total export 79 216 225 265 420 450 469% 100%

Domestic usage 697 784 665 808 847 823 18%

All PKM re-exports from the Netherlands are going to EU-countries. Germany has a dominant share of 65%, PKM exports to Belgium (22%) are increasing and exports to Sweden (7%) are stagnant. This PKM most likely originates from Indonesia and/or Malaysia (see Table 36), but no data are available on the origin of the palm oil exported from the Netherlands to specific countries.

4.1.4 International edible oil trading companies

Around 95 companies in the Netherlands are trading in edible oils, oilseeds and margarine. Most of them are organised in the Netherlands Oils, Fats and Oilseeds Trade Association (NOFOTA).207 As Rotterdam, together with Kuala Lumpur, is one of the two global trading centres for oil palm products, many of these companies are trading in palm oil. The following information is available on companies importing and trading (crude) oil palm products in the Netherlands: • A.Reinstein & Sons Ltd.

De Buurt 93 3372 DB Hardinxveld-Giessendam The Netherlands Telephone: +31-184-621126 Fax: +31-184-621487 E-mail: [email protected] A.Reinstein & Sons is a Britisch commodity trader with a brance office in the Netherlands. The company imports oil palm products into the Netherlands.208

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• Barentz B.V. Saturnusstraat 15 P.O. Box 3001 2130 KA Hoofddorp The Netherlands Telephone: 023-5673426 Fax: 023-5673451 E-mail: [email protected] Website: www.barentz.com Barentz is a mid-sized Dutch trader in commodities for the food and non-food industries. Barentz also trades in oil palm products.209

• Cefetra B.V.

Boompjes 40 P.O. Box 113 3000 AC Rotterdam The Netherlands Telephone: +31-10-4007900 Fax: +31-10-2018000 E-mail: [email protected] Website: www.cefetra.nl Cefetra (Cebeco Feed Trading) is the trading company of ine major Dutch animal feed producing cooperatives. Cefetra is one of the most important buyers of animal feed commodities, including palm kernel meal, in the Netherlands. Products are supplied to Cefetra’s shareholders as well as to other animal feed producers. 210

• Daarnhouwer & Co. B.V. Ebbehout 2 P.O. Box 2037 1500 GA Zaandam Telephone: +31-75-6126384 Fax: +31-75-6318532 E-mail: [email protected] Website: www.daarnhouwer.nl Daarnhouwer & Co. B.V. is a Dutch commodity trading company. The company mainly trades in cocoa, coffee and edible nuts, supplying many well-known chocolate, confectionery, bakery, snack and beverage companies. Since 1996 the company has formed part of the Dutch trading group Amtrada Holding B.V.211 In 1997 Daarnhouwer was mentioned as the most important buyer of PKM from Nigeria, buying between 6,000-8,000 tonnes per month.212

• Dutch Organic International Trade (DO-IT) B.V. Prins Hendrikweg 19 3771 AK Barneveld The Netherlands Telephone: +31-342-423119 Fax: +31-342-423571 Website: www.organic.nl

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DO-IT is a Dutch importer of organic food and food ingredients, among which are organic oil palm products from Brazil and Colombia.213

• Fontannaz B.V.

Gebouw de Goudsesingel 4th Floor, Room 74 Goudsesingel 158 3011 KD Rotterdam The Netherlands Website: www.fontannnaz.com

Fontannaz B.V. is a subsidiary of the commodities trader Fontannaz Commodities (United Kingdom), which concentrates on tropical and soft oils such as palm oil, soybean oil, rapeseed oil and coconut oil. The company owns a futures brokerage house in Malaysia.214

• Koninklijke Bunge Nederland B.V. Aert van Nesstraat 45 3012 CA Rotterdam The Netherlands Telephone: +31-10-2176666 Fax: +31-10-4330035 Website: www.bunge.com Koninklijke Bunge Nederland B.V. is a subsidiary of the large American commodity trader Bunge Inc. Bunge has a regional office in Singapore for the procurement of palm oil and other commodities.215

• L.Hendrix V.O.F.

Wilgenplein 22 P.O. Box 123 2950 AC Alblasserdam The Netherlands Telephone: +31-78-6916333 Fax: +31-78-6917638 E-mail: [email protected] Website: www.l-hendrix.nl

L.Hendrix is a small international broker trading in vegetable oils, including palm oil. Among its clients are Aarhus United, Cargill, Unilever, Henkel, Karlshamns and Procter & Gamble.216

• Matthes & Porton B.V.

Beursplein 37 P.O. Box 30179 3001 DD Rotterdam The Netherlands Telephone: +31-10-4056655 Fax: +31-10-4055037 Website: www.epa.com.my

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Matthes & Porton is a subsidiary of EPA Management Sdn. Bhd., a Malaysian oil palm plantation company belonging to the Johor Group.217 It is probable that Matthes & Porton is trading oil palm products from the plantations of the Johor Group in Malaysia, Papua New Guinea and Indonesia (see paragraph 2.3.1).

• Nidera Handelscompagnie B.V.

P.O. Box 676 3000 AR Rotterdam The Netherlands Telephone: +31-10-4301911 Fax: +31-10-4130338 E-mail: [email protected] Website: www.nidera.nl Nidera Handelscompagnie is a leading international trader and marketer of a large range of agricultural and marine products. With a presence in more than 30 countries, sales of physical commodities, on average, exceed 18 million tons annually. The company's extensive operations are backed by warehouses and processing facilities. Nidera trades in palm oil and other edible oils.218

• Otter Groep B.V.

Havendijk 1001 3114 EL Schiedam The Netherlands Telephone: +31-10-2041700 Fax: +31-10-2041710 E-mail: [email protected] Website: www.otter.nl Otter Groep is a subsidiary of the Dutch agricultural trading group Apollo Group. Otter Groep is small supplier of ingredients, including palm kernel meal, to the livestock feed industry.219

• Tefco Food Ingredients B.V. Italiëweg 21 P.O. Box 1020 2410 CA Bodegraven The Netherlands Telephone: +31-172-650018 Fax: +31-172-615400 E-mail: [email protected] Website: www.tefco.nl Tefco Food Ingredients is a Dutch trading company specialized in the supply of ingredients and raw materials, including palm oil products, to the food industry.220

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• Tradepoint Logistics B.V. Oostzanddijk 16 P.O. Box 170 3220 AD Hellevoetsluis The Netherlands Telephone: +31-181-320858 Fax: +31-181-320860 E-mail: [email protected] Website: www.tradepointbv.com Tradepoint Logistics is a small Dutch agricultural commodities trading company, specializing in vegetable oils. Tradepoint mainly trades with countries in Eastern Europe. Palm oil and derived products are supplied to the Ukraine and other countries in Eastern Europe (Russia, Belarus, Bulgaria, et cetera).221

• Tradin Organic Agriculture B.V.

Latexweg 12 1047 BJ Amsterdam The Netherlands Telephone: +31-20-4074499 Fax: +31-20-4972100 E-mail: [email protected] Website: www.tradinorganic.com Tradin Organic Agriculture is one of Europe's largest trading companies in basic organic commodities. Among the products Tradin is trading in are organic palm oil and palm kernel oil.222

• Wilmar Europe B.V.

Laapersveld 51 1213 VB Hilversum The Netherlands Telephone: +31-35-6231838 Fax: +31-35-6231210 E-mail: [email protected] Wilmar Europe is a subsidiary of Wilmar Holdings in Singapore (see paragraphs 2.3.1 and 2.3.3).223 Wilmar Europe is mainly importing Malaysian and Indonesian palm oil.224

4.1.5 Transport and storage companies

To facilitate the trade in edible oils, four companies offer large-scale edible oil storage facilities in the Rotterdam port area. 225 A number of transport companies transport palm oil from Rotterdam to their final destinations in the Netherlands and neighbouring countries. The following information is available on companies transporting and storing (crude) oil palm products in the Netherlands:

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• C. Koole Beheer B.V. Sluispolderweg 48 1505 HK Zaandam The Netherlands Telephone: +31-75-6812812 Fax: +31-75-6812811 E-mail: [email protected] Website: www.koole.com

Koole is a large Dutch tank storage and transport company, specialising in edible oils. In this market segment Koole is the market leader in the Netherlands. Koole has 17 tank barges for river transport, varying in size from 500 to 2,600 tonnes. The fleet has a total transport capacity of 20,780 tonnes. Koole transports edible oils to the Netherlands, Germany, Switzerland and Belgium. Koole also owns two coasters which transport edible oils from Rotterdam to a number of important English food industries. In Rotterdam, Zaandam and Nijmegen Koole owns edible oil tank storage facilities, with storage capacities of 300,000 m3, 37,500 m3 and 55,000 m3 respectively.226 The Rotterdam storage facility was acquired in July 1999 from Royal Pakhoed, before this company merged with Van Ommeren to form Vopak. According to the European Commission, this facility accounts for 20-30% of the total Dutch-Belgian edible oils storage market.227

• ITC Holland Transport B.V.

Mgr. Borretstraat 55 5375 AB Reek The Netherlands Telephone: +31-486-476050 Fax: +31-486-474381 E-mail: [email protected] Website: www.itcholland.com ITC Holland is a Dutch transport company specialized in tank wagon transport of liquids for the food and feed industry. One of the main product groups transported are vegetable oils and fats, including palm oil. One of ITC’s clients is Unilever, for which it transports oil and fats to Unilever’s various European subsidiary companies.228

• Maas Silo B.V. Montrealweg 151 P.O. Box 5046 3008 AA Rotterdam The Netherlands Telephone: +31-10-4866666 Fax: +31-10-4842420 E-mail: [email protected] Maas Silo is owned by the Dutch companies European Bulk Services (EBS), Maashaven Silo, Gebr. De Jong and the Haven Participatie Maatschappij (HPM). Maas Silo operates a storage facility for edible and industrial oils with a total storage capacity of 10,000 m3.229

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• Maastank International B.V. 1e Welplaatdwarsweg 1-3 P.O. Box 639 3190 AN Hoogvliet The Netherlands Telephone: +31-10-4164477 Fax: +31-10-4161849 Website: www.maastank.nl Maastank International is owned by the Dutch companies Burg Group and GBK. Maastank International provides storage and transhipment services for vegetable and animal-based oils and fats and oleochemicals. The company owns 33 tanks with a total capacity of 30,000 m3.

• Oliefactorij Pieter Bon Czn B.V. Industrial Park "Zuiderhout" Symon Spiersweg 18 1506 RZ Zaandam The Netherlands Telephone: +31-75-6123030 Fax: +31-75-6700991 E-mail: [email protected] Website: www.pieterbon.nl Oliefactorij Pieter Bon provides storage and transhipment services for edible oils and fats. The company is located at the North Sea Canal, between the Amsterdam port and the North Sea, in the vicinity of a number of edible oil refineries (see paragraph 4.2.2).230

• Vopak Vegoil Logistics B.V. Koningin Wilhelminahaven ZOZ 1 P.O. Box 28 3130 AA Vlaardingen The Netherlands Telephone: +31-10-4608899 Fax : +31-10-4604199 E-mail: [email protected] Website: vegoil.vopak.com The Dutch company Vopak is the world leader in chemicals and oil logistics and chemical distribution. Its business unit Vopak Vegoil Logistics operates one of the largest terminals and inland fleets dedicated to vegetable oils and fats and oleochemicals. The central edible oil storage site in the Rotterdam harbour has a capacity of 425,000 m3, which will be expanded with 40,000 m3 before the end of 2003. Vopak Vegoil Logistics also owns storage facilities in Amsterdam (85,000 m3 for petroleum products and vegetable oils) and Dordrecht (124,400 m3 for petroleum products, chemicals and vegetable oils). Outside the Netherlands, the business unit owns vegetable oil storage facilities in Germany, the United Kingdom, Sweden, Spain, China, Australia, United States, Brazil, Chile and Mexico. 231

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When Van Ommeren and Pakhoed merged in July 1999 to form Vopak, the combined company would have a market share of 50-60% on the Dutch-Belgian market for edible oil storage. The European commission therefore forced the company to sell off its Pernis storage facilities to C.Koole Beheer, reducing Vopaks market share to around 30-40%.232 In the Netherlands, Vopak Vegoil Logistics owns a fleet of 17 barges from 500 up to 1,400 mt DWT carrying vegetable oils and fats and oleochemicals. The trading area spans the inland waterways of the Netherlands, Belgium, Germany and France.233

4.2 Edible oil refining

4.2.1 Production figures

In 2001 2.2 million tonnes of edible oils were refined in the Netherlands, of which 670,000 tonnes were palm oil. This figure is slightly higher than the amount of crude palm oil imported into the Netherlands in 2001 (608,000 tonnes), which can be caused by changes in stocks. 234

Table 38 Refining of CPO in the Netherlands (in 1,000 MT)

Product 2001

Crude palm oil 670

as % of CPO import 65.6%

as % of domestic usage 140.2%

As is shown in Table 38, palm oil refining in the Netherlands amounts to 66% of total Dutch palm oil imports (Table 32) and to 140% of domestic usage of palm oil in the Netherlands (Table 33). This means that part of the Dutch palm oil import (around 190,000 tonnes) was first refined in the Netherlands before being exported again. This amounts to 35% of Dutch palm oil exports. As all crude palm oil imported into the Netherlands is refined in the Netherlands, all palm oil exports from the Netherlands (see Table 33) therefore consist of refined palm oil. This product can be shipped directly to customers in the food and other industries in Belgium, Germany, France and other countries, without passing through a refinery in these countries.

4.2.2 Refining companies

In the Netherlands 14 edible oil crushers and refineries are producing oils, fats and intermediate products for the food, animal feed, and oleochemical industries.235 Most of these companies are organized in the Vereniging van Nederlandse Fabrikanten van Eetbare Oliën en Vetten (Vernof). The following information is available on companies refining crude palm oil and palm kernel oil in the Netherlands:

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• ADM Europoort B.V.

Elbeweg 125 P.O. Box 1105 3180 AC Rozenburg The Netherlands Telephone: +31-181-257200 Fax: +31-181-262831 E-mail: [email protected] Website: www.admworld.com ADM Europoort is a subsidiary of the large American commodity trader Archer Daniels Midland. ADM Europoort operates an edible oil refinery, which also refines palm oil. ADM is closely linked to Wilmar Holdings in Singapore, which is probably supplying Indonesian palm oil to ADM Europoort (see paragraphs 2.3.1 and 2.3.3).

• Cargill B.V.

Welplaatweg 34 P.O. Box 5185 3197 ZH Botlek The Netherlands Telephone +31-10-4724388 Fax: +31-10-4165387 Website: www.cargill.nl Cargill is a subsidiary of the American commodity trader Cargill. The company owns an edible oil refinery in Rotterdam, which is the largest in Europe. This refinery mainly refines palm oil.236 This palm oil is probably supplied by Cargill Indonesia (see paragraph 2.3). On the EU market for crude vegetable oils, Cargill is the market leader with a market share of 30 to 40%.237 Cargill mentions the following companies as being among its customers in the Netherlands. Some of these companies could therefore source palm oil from Cargill:238

• Heinz • Johma, a subsidiary of Uniq • Kwekkeboom and Van Dobben, subsidiaries of Cold Food • Unox and Mora, subsidiaries of Unilever

• Karlshamns B.V.

Kreeftstraat 1 P.O. Box 17 1540 AA Zaandijk The Netherlands Telephone: +31-75-6278400 Fax: +31-75-6278478 E-mail: [email protected] Website: www.karlshamns.com Karlshamns is a subsidiary of the Swedish oils and fats group Karlshamns AB. Karlshamns operates an edible oil refinery with an annual capacity of 50,000 tonnes in Zaandijk. The main raw material handled is palm oil.239

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The company states that all its palm oil imports are supplied by oil palm plantations in West Malaysia.240 Karlshamns also buys Indonesian oil palm products from Indonesian suppliers, including the PT Bukit Kapur Reksa refinery (Wilmar Group). 241

• Loders Croklaan B.V.

Hogeweg 1 1521 AZ Wormerveer The Netherlands Telephone: +31-75-6292911 Fax: +31-75-6289455 E-mail: [email protected] Website: www.croklaan.com Loders Croklaan in Wormerveer was a subsidiary of Unilever, but was taken over by the Malaysian IOI Corporation in September 2002. Loders Croklaan supplies the confectionery and bakery industries worldwide with specialty oils and fats, but also has activities focused on supplying nutritional oils and fats as well as other food ingredients in business-to-business markets. The company owns manufacturing facilities in the Netherlands, Egypt, Canada and the United States. Refining capacity in the Netherlands currently stands at 200,000 tonnes annually. Brand names include Creamelt, Crokcool, Durkex and Kriskol.242 Many of Loders Croklaan’s products are derived from palm oil, which will be supplied mainly by IOI from Malaysia. In January 2004 Loders Croklaan announced it will build a new palm oil refinery in Rotterdam with an annual capacity of 600,000 to 750,000 tonnes. This will be the largest palm oil refinery in Europe. Construction is scheduled to begin mid 2004 and be completed 12 months later.243 Obviously Unilever was an important customer of Loders Croklaan and this supply relationship is continuing after the take-over by IOI.244 Other customers of Loders Croklaan include Nestlé (Switzerland), Kraft (United States) and Cadbury Schweppes (United Kingdom).245

• Romi Smilfood B.V.

See paragraph 4.3.2.

• Soctek B.V. Symon Spiersweg 18 1506 RZ Zaandam The Netherlands Telephone: +31-75-6707776 Fax: +31-75-6708759 E-mail: [email protected] Website: www.soctek.nl Soctek is a subsidiary of the Malaysian palm oil refining company Soctek Sdn. Bhd. Soctek owns an edible oil refinery in Zaandam, refining palm oil, palm kernel oils and other oils. Soctek is certified by SKAL to produce organic products. Soctek supplies a number of specialized oils and fats to the food industry.246

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• Unimills B.V. Lindtsedijk 8 P.O. Box 18 3330 AA Zwijndrecht The Netherlands Telephone: +31-78-6109911 E-mail: [email protected] Website: www.unimills.nl Unimills was a subsidiary of Unilever, but it was sold to the Malaysian oil palm plantation group Golden Hope Plantations Bhd. in January 2002. Unimills is currently the second largest edible oil refinery in Europe and has a strong customer base in the Netherlands, Germany, France and Belgium. The refinery has an annual capacity to process about 450,000 tonnes of palm, palm kernel, coconut, soybean, rapeseed and sunflower oil. Its refined oil products are used mainly in the margarine industry, but also in the dairy and confectionery, biscuits, snacks and technical industries.247 Unimills will continue supplying Unilever, which buys around 25% of its output.248 Unimills will be supplied by the oil palm plantations of Golden Hope Plantations, which are mainly concentrated in Malaysia but also in Indonesia (see paragraph 2.3.1).249

• Uniqema B.V.

See paragraph 4.9.1. • Zaanlandse Olieraffinaderij B.V.

Kalf 11 1509 AA Zaandam The Netherlands Telephone +31-75-6557575 Fax: +31-75-6171551 Website: www.dezor.com The Zaanlandse Olieraffinaderij is a small Dutch edible oil refinery, a subsidiary of the American commodity trader Cargill. The company operates as a toll refining and packing operation that processes a wide variety of crude oils for customers to their individual and often diverse specifications. The oils and fats are destined for the food, cosmetic and pharmaceutical industries. Zaanlandse Olieraffinaderij refines (normal and organic) palm oil and palm kernel oil.250

4.3 Margarine, oil, sauces and food ingredients


The Dutch margarine, spreads and fats market reached a value of US$ 478 million (€ 543 million) in 2001, with butter accounting for over 40% of the market. 251 Table 39 provides figures on the production of margarine, spreads and fats in the Netherlands (excluding butter).

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Table 39 Margarine, spreads and fats in the Netherlands (in 1,000 MT) 252

Production 2000 2001 Share

Margarine 204 42.4%

Other table spreads 269

58 12.1%

Solid cooking fats 220 45.7%

Total 481 100%

4.3.2 Producers of margarine, spreads and fats

In the Netherlands 10 companies are active in the margarine, spreads, oils and cooking fats sector. Three of them only produce oils and cookings fats, the others also produce margarine and spreads. The companies in this sector are organized in the Bond van Nederlandse Margarine Fabrikanten (BNMF). 253 Probably this sector is the most important user of Indonesian palm oil in the Netherlands. Together with organisations of the edible oil refining industry and some related sectors, as well as labour organisations, the BNMF and the NVFMS (see paragraph 4.3.3) are part of the Productschap Magarine, Vetten en Oliën (MVO). This is not an ordinary industry organisation, but a semi-governmental body which has power to issue regulations which are binding for the sector as a whole. After some shipments of Indonesian palm oil to the Rotterdam port were found to be contaminated with diesel in the fall of 1999, the Productschap MVO announced it would help the Indonesian oil palm industry, the Belawan port authorities and the Indonesian government with assuring and controlling the quality of the CPO produced.254 The following information is available on companies producing margarine, spreads and frying fats in the Netherlands: • Albert Heijn B.V.

Hoofdtocht 3 P.O. Box 3050 1500 HB Zaandam The Netherlands Telephone: +31-75-6593302 Fax: +31-75-6598225 Website: www.ah.nl Albert Heijn is a subsidiary of the large Dutch retail group Ahold. With its private label margarine and spreads, Albert Heijn has a 1.6% market share on the Dutch margarine and spreads market.255

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• Levo Produktenmaatschappij B.V.

Prins Hendrikkade 10 P.O. Box 518 8800 AM Franeker The Netherlands Telephone: +31-517-394141 Fax: +31-517-397178 E-mail: [email protected] Website: www.levo.nl Levo Produktenmaatschappij is a small Dutch supplier of margarine, edible oils and fats to the foodservice sector, under its own brand names Levo and Grenada, or under private labels. Some of these products are based on palm oil.256 Recently Levo introduced Grenada Gold Class A, a new frying oil for the foodservice sector made from fractionated palm olein. The company claims the oil is healthier and has improved frying characteristics.257

• Raisio Group Plc.

P.O. Box 101 21201 Raisio Finland Telephone: +358-2-4432111 Fax: +358-2-4432315 E-mail: [email protected] Website: www.raisiogroup.com Raisio Group is a large Finnish food and chemicals company. Its export margarine brand name is Benecol, which probably does not contain palm oil.258 On the Dutch margarine and spreads market Raisio has a 1.5% market share.259

• Remia C.V.

Willem Arntzlaan 71 P.O. Box 10 3734 ZG Den Dolder Telephone: +31-30-2297911 Fax: +31-30-2283994 E-mail: [email protected] Website: www.remia.nl Remia is a Dutch producer of margarine, spreads, fats and sauces under the Remia and Rosa brands, as well as under private labels for the retail, foodservice and industry markets. An important part of the production is exported. Part of Remia’s products contains palm oil and part is organic.260

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Figure 23. Remia palm oil frying fat

On the Dutch margarine and spreads market Remia has a 7.2% market share.261 A customer of Remia’s organic palm oil is the small organic bakery Billy's Farm (Netherlands).262

• Romi Smilfood B.V.

Koningin Wilhelminahaven NZ 17 P.O. Box 20 3130 AA Vlaardingen The Netherlands Telephone: +31-10-4453500 Fax: +31-10-4353627 E-mail: [email protected] Website: www.smilfood.nl Romi Smilfood is a subsidiary of the Koninklijke Smilde Group (The Netherlands), with plants in Vlaardingen and Heerenveen. Romi Smilfood has its own edible oil refinery and manufactures crude oils into edible oils, fats and margarine. Brand names are Romi and Bebo, but Romi Smilfood also produces private label margarine for some Dutch supermarkets (Aldi, Nieuwe Weme). Most products are sold predominantly to the foodservice, bakery and food industry markets.263

Figure 24. Romi palm oil frying fat

Some of Romi Smilfood’s products contain oil palm products. Bebo diet margarine and diet halvarine contain both palm oil and palm kernel oil.264 Recently Romi Smilfood launched “Romi Palm Vloeibaar”, a liquid frying oil based on palm oil. Romi Smilfood claims it is the “first and only healthy ànd sustainable” frying oil on the Dutch market. On a special website consumers can check which foodservices use this product.265

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• Unilever Bestfoods Nederland B.V.

Nassaukade 3 P.O. Box 160 3000 AD Rotterdam The Netherlands Telephone: +31-10-4394911 Fax: +31-10-4394311 Website: www.unilever.nl Unilever Bestfoods Nederland is part of the Anglo-Dutch food giant Unilever. Unilever Bestfoods is the largest food producer in the Netherlands. The company has plants in Baarn, Delft, Loosdrecht, Oss and Rotterdam and produces margarine, spreads, oils, sauces and seasonings, soups, tea and diet products. Brand names for its margarine, spreads, oils and cooking fats are Blue Band, Zeeuws Meisje, Lätta, Linera, Becel, Olivio, Bertolli, Croma, Brio, Flora, Phase, Planta, Rama and Bona.266 Unilever Bestfoods Nederland is the largest producer of margarine and spreads in the Netherlands with a 60.5% market share.267 On a global scale Unilever buys over one million tonnes of palm oil, or 6-8% of the total world production, every year, mostly from Malaysia and Indonesia.268 Indonesian suppliers of oil palm to Unilever include:

• Golden Agri-Resources Ltd. Sinar Mas Group269 • PT Bukit Kapur Reksa Wilmar Group270 • PT Socfindo Bolloré Group271 • PT Tolan Tiga Sipef Group272 • Sawitra Oil Grains Ltd. Salim Group273

PNG suppliers of oil palm to Unilever include:

• New Britain Palm Oil Johor Group274 • Vandemoortele N.V.

Rucphensebaan 23 P.O. Box 15 4706 GA Roosendaal The Netherlands Telephone: +31-165-523750 Fax: +31-165-554166 E-mail: [email protected] Vandemoortele is a subsidiary of the Belgian company Vandemoortele, which is a leading European producer of table oils, margarine, fats, sauces and frozen bakery products, supplying to the retail, foodservice and industry markets. Brand names for its oils, fats and margarines are Reddy, Fama, Roda, Minelma, Resi, Vitelma, Belolive, Alpro, Blanc de Boeuf, Sojola, BioVital, Gold Cup, St Auvent, Celor, Risso, Albos, Norma and St Allery. Some of these products contain palm oil.275 On the Dutch margarine and spreads market Vandemoortele has a 3.1% market share.276

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• Van Dijk Food Products B.V.

2e Industrieweg 8 P.O. Box 42 3410 BA Lopik The Netherlands Telephone: +31-348-558911 Fax: +31-348-558666 E-mail: [email protected] Website: www.vandijkfoodservice.nl Van Dijk Food Products is a large Dutch producer of margarine, cooking fats and sauces. The company has plants in Lopik and Zeewolde. Brand names are Gouda’s Glorie, Wajang, Twenty Four, Bak en Braad, Diamant, Mediterrane, Summer, Leeuwezegel and Markanto. Some of these products contain palm oil.

Figure 25. Diamant palm oil frying fat

On the Dutch market for margarine and spreads, Van Dijk is the number two with a 19.1% market share.277 But it should be added that Van Dijk is the most important producer of private label margarine and spreads for the Dutch consumer market, accounting for 80-90% of Dutch margarine production under private labels. Including the production of its own brands, Van Dijk accounts for 30-40% of total Dutch margarine production.278 On the Dutch market for frying oils and fats Van Dijk is the market leader. On the consumer market Van Dijk has a market share of 35-45% with the Diamant brand and some private label brands. On the out-of-home market for frying oils and fats Van Dijk has a 20-30% market share.279

4.3.3 Producers of mayonnaise and sauces

In the Netherlands 10 companies are active in the mayonnaise and sauces sector. Eight companies in this sector are organized in the Nederlandse Vereniging van Fabrikanten van Mayonaise, Slasauzen, Pikante en Aanverwante Sauzen (NVFMS).280 This sector is probably also an important user of Indonesian palm oil. The following information is available on companies producing mayonnaise and sauces in the Netherlands:

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• H.J. Heinz B.V. Kantorenpark De Breul Arnhemse Bovenweg 160-178 P.O. Box 217 3700 AE Zeist The Netherlands Telephone: +31-30-6973700 Fax: +31-30-6973701 Website: www.heinz.nl H.J. Heinz is a subsidiary of the listed American food company H.J. Heinz Company, one of the largest food companies in the world. In the Netherlands H.J. Heinz is a very prominent player on the soup and sauces markets, with the brand names Heinz, Hak and Honig.281 H.J. Heinz is a customer of the Dutch subsidiary of Cargill, possibly for the supply of palm oil. 282

• Masterfoods C.V. Benjamin Franklinstraat 19 P.O. Box 1002 3260 AA Oud Beijerland The Netherlands Telephone: +31-186-645300 Fax: +31-186-645310 E-mail: [email protected] Website: www.masterfoods.nl Masterfoods C.V. is a subsidiary of the American family-owned food company Mars Inc. Mars is a major supplier of sauces on the Dutch markets, under the brand names Uncle Ben’s, Dolmio and Suzi-Wan. From the Dutch plant products are exported to a large number of countries, of which the United Kingdom, Ireland, the Scandinavian countries, Germany and France are the most important.283

• Nestlé Nederland B.V. P.O. Box 12365 1100 AJ Amsterdam The Netherlands Telephone: +31-20-5699699 Fax: +31-20-5699215 Website: www.nestle.nl Nestlé Nederland is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In the Netherlands Nestlé is an important producer of soups and sauces for the retail and foodservice markets under the Maggi, Buitoni and Chef brand names.284 Many soups and sauces sold under the Maggi and Chef brands contain palm oil. 285 A supplier of palm oil ingredients to Nestlé is Loders Croklaan (see paragraph 4.2.2).286

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• Remia C.V.

Willem Arntzlaan 71 P.O. Box 10 3734 ZG Den Dolder The Netherlands Telephone: +31-30-2297911 Fax: +31-30-2283994 E-mail: [email protected] Website: www.remia.nl Remia is a privately-owned Dutch producer of margarine, spreads and sauces under the Remia and Rosa brands, as well as under private labels for the retail, foodservice and industry markets. An important part of the production is exported. Part of Remia’s products contains palm oil.287

• Struik Foods Voorthuizen B.V. P.O. Box 70 3780 AA Voorthuizen The Netherlands Telephone: +31-342-474848 Fax: +31-342-474004 Website: www.struik.nl Struik Foods is a small, privately-owned Dutch food company, producing meat products, soups, sauces and ready-made meals under the Struik and California brand names.288

• Unifine B.V. Weverseinde 343 P.O. Box 5631 3297 ZG Puttershoek The Netherlands Telephone: +31-78-6762344 Fax: +31-78-6762870 E-mail: [email protected] Website: www.unifine.com Unifine a subsidiary of the Dutch sugar and food cooperative Cosun. Unifine specializes in supplying sauces and snacks to the foodservice sector, under the brand names Wyko and Degens.289

• Unilever Bestfoods Nederland B.V.

Nassaukade 3 P.O. Box 160 3000 AD Rotterdam The Netherlands Telephone: +31-10-4394911 Fax: +31-10-4394311 Website: www.unilever.nl

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Unilever Bestfoods Nederland is part of the Anglo-Dutch food giant Unilever. Unilever Bestfoods is the largest food producer in the Netherlands. The company has plants in Baarn, Delft, Loosdrecht, Oss and Rotterdam and produces margarine, spreads, oils, sauces and seasonings, soups, teas and diet products. Brand names for sauces are Knorr, Bertolli, Becel, Calvé, Conimex, Colman’s, Ragú, Yofresh and Hellmann’s.290 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 4.3.2.

• Van Dijk Food Products B.V.

2e Industrieweg 8 P.O. Box 42 3410 BA Lopik The Netherlands Telephone: +31-348-558911 Fax: +31-348-558666 E-mail: [email protected] Website: www.vandijkfoodservice.nl Van Dijk Food Products is a large Dutch producer of margarine, frying fats and sauces. The company has plants in Lopik and Zeewolde. Brand names are Gouda’s Glorie, Mad sauce, Mediterrane and Summer. Some of these products probably contain palm oil. On the Dutch consumer market for sauces Van Dijk has a 20-30% market share. 291

• Verstegen Spices & Sauces B.V. Industrieweg 161 P.O. Box 11041 3004 EA Rotterdam Telephone: +31-10-2455100 Fax: +31-10-4624707 E-mail: [email protected] Website: www.verstegen.nl Verstegen is a medium-sized Dutch supplier of herbs, spices and sauces to the retail, foodservice and industry markets, under the brand name Verstegen.292

4.3.4 Edible oils and fats packers and traders

Edible oils and fat packers and traders buy edible oils, fats, margarines and sauces from edible oil refineries and margarine and sauces producers, to repack and sell them further. Often they buy products in bulk and pack them in retail packages (bottles). The following information is available on edible oils and fats packers and traders in the Netherlands: • Algemene Oliehandel B.V.

Maliebaan 68 P.O. Box 13072 3507 LB Utrecht The Netherlands Telephone: +31-30-2334514 Fax: +31-30-2321561 Website: www.aoh.nl

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Algemene Oliehandel is a packer of a wide range of vegetable oils and fats, including palm oil, to the retail and industry markets. Brand names are Unoli and Magnolia, but AOH also packs edible oil for private labels. The bottling and packaging facility of AOH is located in Rotterdam, at the site of Maastank International B.V. (see paragraph 4.1.5).293

• Cebag B.V.

Dobbe 73-III P.O. Box 165 8000 AD Zwolle The Netherlands Telephone: +31-38-4559900 Fax: +31-38-4559955 E-mail: [email protected] Website: www.cebag.com Cebag is a Dutch company trading in oils, margarine and sauces, mainly for export markets. Brand names are Coroli, Pim, Rooly and Jasmine. Some of these products contain palm oil.294

• De Oliehoorn B.V.

De Compagnie 47 1689 AG Zwaag The Netherlands Telephone: +31-229-244660 Fax: +31-229-244622 Website: www.oliehoorn.nl De Oliehoorn is a Dutch company trading in edible oils and fats, including palm oil, and producing sauces. Its products are supplied to the foodservice and industrial markets.295

Figure 26. Oliehoorn palm oil frying fat

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• Elburg Global B.V. Robertsmatenstraat 6 8081 HL Elburg The Netherlands Telephone: +31-525-682309 Fax: +31-525-682395 E-mail: [email protected] Website: www.elburgglobal.nl Elburg Global is an international exporter of edible oils and fats, including palm oil, under the Elburg label.296

• Good-Fry International N.V.

P.O. Box 23444 3001 KK Rotterdam The Netherlands E-mail: [email protected] Website: www.goodfry.com Good-Fry International is a subsidiary of Lipidia Holding S.A. (Luxembourg). The company supplies frying oils, margarine and other oil products to the food industry, the catering sector and the retail sector. Some of these products are based upon palm oil.297

• Oils & Fats Packers Rotterdam B.V. Statenweg 126 D 3039 JM Rotterdam The Netherlands Telephone: +31-10-4655755 E-mail: [email protected] Oils & Fats Packers Rotterdam is a packer of edible oils and fats, including palm oil.

• Spack B.V. Pinnepot 6 3233 LP Oostvoorne The Netherlands Telephone: 0181-486486 Fax: 0181-486857 E-mail: [email protected] Website: www.spack.nl Spack bottles and sells various types of edible oils and oil meals to the consumer and wholesale markets, including palm oil and palm kernel meal. Most products sold by Spack are produced organically. Brand names are Spack and PrimaBio. Oil palm products are sourced from Ghana, Brazil and Colombia.298

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• Vereenigde Oliefabrieken B.V.

P.O. Box 1140 3000 BC Rotterdam The Netherlands Telephone: +31-10-2868080 Fax: +31-10-2860515 E-mail: [email protected] Website: www.vo.nl

Vereenigde Oliefabrieken is a packer of palm oil and other edible oils and fats, which are sold internationally. The company also trades in margarine and derived ingredients.299

4.4 Biscuits, cakes and pastry


The Dutch market for biscuits, cakes and pastry reached a value of € 832 million in 2002, excluding the production of artisan bakeries. Biscuits account for 51%, pastry for 28% and cakes for 20%.300

4.4.2 Producers of biscuits

The following information is available on companies producing biscuits in the Netherlands:

• Bolletje B.V.

Turfkade 9 P.O. Box 108 7600 AC Almelo The Netherlands Telephone: +31-546-878000 Fax: +31-546-878287 Bolletje is the number three on the Dutch biscuit market, with a 10% market share. Brand name is Bolletje.301

• Haust B.V. Pieter Zeemanweg 17 P.O. Box 3001 3301 DA Dordrecht The Netherlands Telephone: +31-78-6537653 Fax: +31-78-6537676 Website: www.haust.nl Haust is a subsidiary of the Dutch private food company Continental Bakeries. Haust produces various types of biscuits and cakes under the brand names Haust, Bussink, Barkhuis, Brink, Van Kooten and Pirouwafer, as well as under private labels.302

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• LU, General Biscuits Nederland B.V.

Tuinzigtlaan 15B P.O. Box 3538 4800 DM Breda Telephone: +31-76-5231300 Fax: +31-76-5231301 E-mail: [email protected] Website: www.lu.nl LU, General Biscuits Nederland is a subsidiary of the French listed food company Danone, which concentrates on fresh dairy products, beverages and cereal biscuits and snack crackers. Danone claims to be the second-largest producer of cereal biscuits and snack crackers in the world.303 LU, General Biscuits Nederland claims to be the market leader in the Dutch markets for sweet biscuits, baby- and child-biscuits and cereal biscuits. Brand names are Lu, Liga, Vitalinea, Pim's, Bastogne and Prince.304 Danone and Verkade are the market leaders on the Dutch biscuit market, with a 20% market share each.305

• Pally Holland B.V. Galvanibaan 12 P.O. Box 2340 3430 DS Nieuwegein The Netherlands Telephone: +31-30-6079211 Fax: +31-30-6042577 E-mail: [email protected] Website: www.pallybiscuits.com Pally Holland is a small Dutch producer of biscuits under the Pally brand, which are supplied to more than 40 countries.

• Verkade - United Biscuits Netherlands B.V. P.O. Box 12996 1100 AZ Amsterdam Zuidoost The Netherlands Telephone: +31-20-3422522 Fax: +31-20-3422500 Website: www.verkade.nl Verkade - United Biscuits Netherlands is a subsidiary of the British food company United Biscuits. In the Netherlands, United Biscuits claims to have a 25% market share of the total biscuit market, and to be market leader in sweet biscuits. Brand names are Verkade, Sultana, BN, McVities, Go-Ahead!, Delacre, Shuttles and Nobo.306 Verkade and Danone are the market leaders on the Dutch biscuit market, with a 20% market share each.307

4.4.3 Producers of cakes and pastry

The following information is available on companies producing cakes and pastry in the Netherlands:

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• Bake Five B.V.

Philipsstraat 10-12 3833 LC Leusden The Netherlands Telephone: +31-33-4343143 Fax: +31-33-4343142 E-mail: [email protected] Website: www.bakefive.nl Bake Five is a collaborative organisation of 17 independent bakeries, producing bread, cake and pastry. Bake Five supplies many leading supermarket chains.308

• Bakkersland B.V. Buskesdries 9, Andelst P.O. Box 31 6674 ZG Herveld The Netherlands Telephone: +31-488-471747 Fax: +31-488-471748 Website: www.bakkersland.nl Bakkersland is a private Dutch bakery group, one of the largest suppliers of bread, cakes and pastry to supermarkets in the Netherlands, under the brand names Oma’s Cake and Space as well as private labels. Bakkersland also sells pastry in its retail chain Multivlaai.309

• Délifrance Nederland B.V. Keurmeesterstraat 19 2984 BA Ridderkerk The Netherlands Telephone: +31-180-485111 Fax: +31-180-485192 E-mail: [email protected] Website: www.delifrance.nl Délifrance Nederland is a subsidiary of the French milling company Grands Moulins de Paris. Délifrance Nederland supplies over 500 bake-off products - bread, pastry and snacks - to bakery shops and foodservice companies.310

• Kamps Nederland B.V. Reeuwijkse Poort 215 2811 MZ Reeuwijk Telephone: +31-182-368368 E-mail: [email protected] Website: www.qualitybakers.nl

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Kamps Nederland is a subsidiary of the German company Kamps, the leading bakery group in Europe. Kamps was recently acquired by the Italian food company Barilla. Kamps Nederland is one of the largest suppliers of bread and pastry in the Netherlands, via its own shops (Bakker Bart), outdoor markets (‘t Stoepje) and supermarkets (Heuvelland, Bakers Pride and private labels).311

• Pruvé B.V.

Hamerstraat 12 P.O. Box 46 1135 ZG Edam The Netherlands Telephone: +31-299-372856 Fax: +31-299-372711 E-mail: [email protected] Website: www.pruve.nl Pruvé is a leading international manufacturer of pastry components and ready to serve products for traditional bakeries, foodservice, supermarkets and industrials. Pruvé is a subsidiary of the Dutch privately-owned food company Koninklijke Smilde. Many of Pruvé’s products probably contain oil palm products.312

• Top Bakkers B.V. Saba 10 P.O. Box 20052 7302 HB Apeldoorn The Netherlands Telephone: +31-55-5998222 Fax: +31-55-5998228 E-mail: [email protected] Website: www.topbakkers.nl Top Bakkers is a collaborative organisation of around 100 independent bakeries, which supply bread, cake and pastry products to the foodservice market, institutions and small retailers.313

• Unipro Professional Bakery B.V. P.O. Box 284 4600 AG Bergen op Zoom Tel,: +31-800-0226086 Fax: +31-800-0222166 E-mail: [email protected] Website: www.uniprobakery.com Unipro Professional Bakery is a subsidiary of the listed Dutch sugar and bakery ingredients company CSM. Unipro is a leading supplier of bake-off bread and pastry to bakeries in the Benelux countries, under the brand names Molko and La Maison du Pain.314

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• Vandemoortele N.V.

Rucphensebaan 23 P.O. Box 15 4706 GA Roosendaal The Netherlands Telephone: +31-165-523750 Fax: +31-165-554166 E-mail: [email protected] Website: www.vandemoortelebakeryproducts.com Vandemoortele is a subsidiary of the Belgian company Vandemoortele. In the Netherlands Vandemoortele is a leading supplier of bake-off bread, pastry and other bakery products to bakers and caterers. Brand names for bakery products are Doony’s, Banquet d’Or, Gold Cup Express and Croustifrance.315

4.5 Confectionery and ice cream


The Dutch market for chocolate confectionery reached a value of € 537 million in 2002. Bonbons make up 31%, candybars 29% and tablets 21%.316 The market is fairly fragmented, with Verkade and a number of smaller Dutch companies competing with the leading international confectioners Mars, Kraft and Nestlé.317 The Dutch market for sugar confectionery reached a value of € 674 million in 2002, with liquorice accounting for 22%, chewing gum for 20%, mints for 11% and gum confectionery for 15%.318 The Netherlands is amongst the world’s top confectionery producing nations.319 The Dutch ice-cream market reached a value of US$ 326 million (€ 364 million) in 2001. Dairy-based ice-cream has a 90% share of the market. Water-based and yogurt-based ice-cream make up the remaining 10%.320

4.5.2 Producers of chocolate confectionery

The following information is available on companies producing chocolate confectionery in the Netherlands: • Baronie-De Heer B.V.

Galvanistraat 14 3029 AD Rotterdam The Netherlands Telephone: +31-10-2214214 Fax: +31-10-2214200 E-mail: [email protected] Website: www.baronie.com Baronie-De Heer is a private Dutch chocolate producer, supplying chocolate confectionery under the brand names De Heer, Baronie and Tjoklat, as well as private labels. The company claims to be one of the largest producers of chocolate confectionery in Western Europe.321

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• Delicia B.V. Zevenheuvelenweg 53 P.O. Box 5052 5004 EB Tilburg The Netherlands Telephone: +31-13-4625525 Fax: +31-13-4630805 E-mail: [email protected] Website: www.delicia.nl Delicia is a subsidiary of the Dutch food company Koninklijke Wessanen. Delicia claims to be the largest producer in the world of chocolate vermicelli, flakes and pajets, chocolate-flavoured vermicelli and coloured vermicelli. Annually, Delicia markets over ten million kilograms of chocolate decorations and over thirty million packagings to all corners of the world. These products are sold to consumers under the brand names Riox, Nicolet and Sprinklettes and private labels of supermarkets, as well as to confectioners, ice cream producers and other food industries.322

• Droste Nederland B.V. P.O. Box 5 8170 AA Vaassen Telephone: +31-578-578200 Fax: +31-578-573388 E-mail: [email protected] Website: www.droste.nl Droste Nederland is a subsidiary of the German confectionery company Hosta. Droste is one of the largest producers of chocolate confectionery in the Netherlands, aiming at the luxury segment. 65% of its sales are exported.323

• Ferrero B.V.

Koningsstraat 53 1211 NK Hilversum The Netherlands Telephone: +31-35-6254300 Fax: +31-35-6254330 Website: www.ferrero.nl Ferrero is a subsidiary of the independent Italian confectionery company Ferrero. Brand names on the Dutch chocolate confectionery market are Kinder, Nutella, Ferrero Rocher, Confetteria Raffaello and Mon Chéri.324

• H.J. Heinz B.V. Kantorenpark De Breul Arnhemse Bovenweg 160-178 P.O. Box 217 3700 AE Zeist The Netherlands Telephone: +31-30-6973700 Fax: +31-30-6973701 Website: www.heinz.nl

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H.J. Heinz is a subsidiary of the listed American food company H.J. Heinz Company, one of the largest food companies in the world. In the Netherlands H.J. Heinz is the largest producer of branded chocolate vermicelli and related products, with the brand names De Ruyter and Venz.325 H.J. Heinz is a customer of the Dutch subsidiary of Cargill, possibly for the supply of palm oil. 326

• Kraft Foods B.V. P.O. Box 530 2130 AM Hoofddorp The Netherlands Telephone: +31-23-5660700 Fax: +31-23-5620828 Website: www.milka.nl Kraft Foods is a subsidiary of the listed American company Altria, one of the largest food and tobacco companies in the world. Kraft Foods, which owns Jacobs Suchard, Barry Callebaut and Bensdorp, claims to be the Dutch market leader on the market for chocolate tablets, with brand names Côte d’Or, Toblerone, and Milka. Other chocolate toffees are sold under the brand name Chokotoff.327 On the Dutch chocolate confectionery market as a whole, Kraft Foods shares the second place with Nestlé with a market share of 13%.328 A supplier of palm oil ingredients to Kraft Foods is Loders Croklaan (see paragraph 4.2.2).329

• Masterfoods Veghel B.V. Pattonweg 1 5466 AG Veghel The Netherlands Telephone: +31-413-383333 Fax: +31-413-340229 E-mail: [email protected] Website: www.masterfoods.nl Masterfoods Veghel B.V. is a subsidiary of the American family-owned food company Mars Inc., the largest confectioner in the world. Over 90% of the Dutch plant’s production is exported. Brand names are Mars, Twix, Snickers, Bounty, M&M’s, Milky Way, Dove, Balisto, Galaxy, Maltesers and Skittles.330 In the Netherlands, Mars is the market leader on the chocolate confectionery market with a market share of 16%.331

• Nestlé Nederland B.V. P.O. Box 12365 1100 AJ Amsterdam The Netherlands Telephone: +31-20-5699699 Fax: +31-20-5699215 Website: www.nestle.nl

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Nestlé Nederland is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In the Netherlands Nestlé markets chocolate confectionery under the brand names KitKat, Lion, Nuts, Bros, Rolo, Smarties, After Eight, Quality Street, Galak and Yes.332 Nestlé shares the second place on the Dutch chocolate confectionery market with Kraft Foods, with a market share of 13%.333 A supplier of palm oil ingredients to Nestlé is Loders Croklaan (see paragraph 4.2.2).334

• Steenland's Chocoladefabriek B.V. Burgemeester van Reenensingel 127 P.O. Box 445, 2800 AK Gouda The Netherlands Telephone: +31-182-590700 Fax: +31-182-538922 Website: www.steenland.nl Steenland is a small Dutch producer of chocolate confectionery. It claims to be the largest manufacturer of chocolate coins in the world. The company also produces chocolate hollow shapes, chocolate sticks, chocolate pastilles and mini-bars, mostly for private labels all over the world. The liquid chocolate is supplied by Callebaut (Belgium), which is part of Kraft Foods.335

• Verkade - United Biscuits Netherlands B.V.

P.O. Box 12996 1100 AZ Amsterdam Zuidoost The Netherlands Telephone: +31-20-3422522 Fax: +31-20-3422500 Website: www.verkade.nl Verkade - United Biscuits Netherlands is a subsidiary of the British food company United Biscuits. Verkade is probably the number four on the Dutch chocolate confectionery market and one of the market leaders in chocolate tablets. Brand names are Verkade and Delichoc.The company is exporting a large part of its turnover to European countries, especially in the northern half of Europe.336

4.5.3 Producers of sugar confectionery

The following information is available on companies producing sugar confectionery in the Netherlands: • Perfetti Van Melle Benelux B.V.

Zoete Inval 20 P.O. Box 3000 4800 DA Breda The Netherlands Telephone: +31-76-5275000 Fax: +31-76-5228560 Website: www.perfettivanmelle.nl

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Perfetti Van Melle Benelux is a subsidiary of the Italian confectionery producer Perfetti Van Melle. The company claims to be the second largest sugar confectionery producer in Europe. Brand names in the Netherlands are Mentos, Frisk, Fruittella, Klene, Wybert, Nubilo, Nubilottes, Meller, Momints and Look-O-Look.337 On the Dutch sugar confectionery market, Perfetti Van Melle is the market leader together with RBV-Leaf. 338

• RBV-Leaf B.V.

Hoevestein 26 P.O. Box 69 4900 AB Oosterhout The Netherlands Telephone: +31-162-485485 Fax: +31-162-485562 Website: www.rbvleaf.com RBV-Leaf is a subsidiary of the Dutch listed sugar and food ingredients company CSM. Brand names for its confectionery products are Sportlife, King, RedBand, Venco, Maple Leaf and Xylifresh.339 On the Dutch sugar confectionery market, RBV-Leaf is the market leader together with Perfetti Van Melle.340

4.5.4 Producers of ice cream

The following information is available on companies producing ice cream in the Netherlands: • Haägen-Dazs Nederland B.V.

P.O. Box 273 2700 AG Zoetermeer The Netherlands Telephone: +31-79-3441100 Fax: +31-79-3420831 Website: www.haagen-dazs.nl Haägen-Dazs Nederland is a subsidiary of the American drinks company Pillsbury, which is owned by the British listed company Diageo. In the Netherlands Haägen-Dazs Nederland markets luxury ice cream under the Haägen-Dazs brand name.341

• IgloMora Groep B.V.

Stationsplein 50 P.O. Box 70510 5201 CM 's Hertogenbosch The Netherlands Telephone: +31-73-6835000 Fax: +31-73-6835100 Website: www.mora.nl IgloMora Groep is part of the Anglo-Dutch food giant Unilever. The company has plants in Hellendoorn, Maastricht and Mol (Belgium) producing ice-cream, frozen snacks and frozen food products. Brand names for ice-cream are Ola, Magnum, Hertog, Bon Vivant, Asian Delight, Calippo, Carte d’Or, Cornetto, Max, Solero, Ben & Jerry’s, Viennetta, Winner Taco, Caraco, Davino and Swirl's. 342

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On the Dutch ice cream market Iglo is the market leader with a market share close to 50%.343 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 4.3.2. A supplier of palm oil ingredients to IngloMora is Loders Croklaan (see paragraph 4.2.2).344

• Masterfoods Veghel B.V. Pattonweg 1 5466 AG Veghel The Netherlands Telephone: +31-413-383333 Fax: +31-413-340229 E-mail: [email protected] Website: www.masterfoods.nl Masterfoods Veghel B.V. is a subsidiary of the American family-owned food company Mars Inc. The company also markets ice cream imported from a Mars plant in France. Brand names for ice cream are Mars, Twix, Snickers, Bounty, M&M’s, Milky Way, Dove, Balisto, Galaxy, Maltesers and Skittles.345 On the Dutch ice cream market Mars is the number three with a market share of 10%.346

• Nestlé Nederland B.V. P.O. Box 12365 1100 AJ Amsterdam The Netherlands Telephone: +31-20-5699699 Fax: +31-20-5699215 Website: www.nestle.nl Nestlé Nederland is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In the Netherlands Nestlé markets ice cream under the brand names Nestlé, Mövenpick, Shirley’s, Fruitjoy, Schöler and Christophe Delmotte.347 On the Dutch ice cream market Nestlé is the number two with a market share of 15%.348 A supplier of palm oil ingredients to Nestlé is Loders Croklaan (see paragraph 4.2.2).349

4.6 Snacks, crisps and chips


The Dutch market for nuts, crisps and savoury biscuits reached a value of € 642 million in 2002. Nuts account for 33%, crisps, popcorn and related products for 53% and salt biscuits for 14%.350 Figures for the Dutch market for (frozen) meat snacks (croquettes, meat balls, et cetera) were not available.

4.6.2 Producers of nuts, crisps, popcorn and savoury snacks

The following information is available on companies producing nuts, crisps, popcorn and savoury snacks in the Netherlands:

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• Croky Chips B.V. Teugseweg 58012 P.O. Box 144 7400 AC Deventer The Netherlands Telephone: +31-570-504040 Fax: +31-570-504080 Croky Chips is a subsidiary of the British food company United Biscuits. In the Netherlands, Croky is the second largest producer of crisps and other salt snacks. Brand names are Croky and private labels.351 On the Dutch savoury snacks market Croky is the number two with a market share of around 10%.352

• Duyvis B.V.

Plettenburg 7 3439 LW Nieuwegein The Netherlands Telephone: +31-30-6309999 Fax: +31-30-6309111 E-mail: [email protected] Website: www.duyvis.nl Duyvis is a subsidiary of the listed American food, personal care and textile company Sara Lee. On the Dutch nuts market, Duyvis is the market leader.353

• Procter & Gamble Nederland B.V. Watermanweg 100 3067 GG Rotterdam The Netherlands Telephone: +31-10-2863100 Fax: +31-10-2863131 Website: www.eu.pg.com Procter & Gamble Nederland is a subsidiary of the American listed company Procter & Gamble, which is one of the largest producers of personal care and household care products in the world. In the Netherlands the company is also selling salt snacks under the Pringles brand. 354

• Smiths Food Group B.V. P.O. Box 1008 3600 BA Maarssen The Netherlands Telephone: +31-30-2473811 Fax: +31-30-2473650 Website: www.smiths.nl

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Smiths Food Group is a subsidiary of the American snacks company Frito-Lay, which belongs to the listed American drinks company PepsiCo. Smiths Food is the largest producer of crisps and other salt snacks in the Netherlands. Brand names are Lay’s, Smiths, Cheetos, Dippas, Chipito, Nibb-it, Doritos, Hamka's, Wokkels, Frite Sticks, Bugles, Mama Mia's, Pom Tips, Ringlings, Grill’s, Bits, and Mediterràneas.355 On the Dutch savoury snacks market Smiths is the market leader, controlling around two-thirds of the market.356 The Food Oils Group of Archer Daniels Midland in May 2002 received the Frito-Lay North America 2001 Supplier of the Year award, for its supplies of vegetable oil (including palm oil).357 It is possible that ADM is also a preferred supplier of Frito-Lay’s operations in Europe..

• Swartberg Levensmiddelen Fabrieken B.V. Sluisjesdijk 96-102 3087 AJ Rotterdam The Netherlands Telephone: +31-10-4293400 Fax: +31-10-4293902 E-mail: [email protected] Website: www.swartberg.com Swartberg is a small Dutch producer of snack nuts and related products such as peanut butter. Brand names are PCD and private labels.358 On the Dutch snack nuts market Swartberg is the number two behind Duyvis.359

• The Nut Company B.V. P.O. Box 5276 6802 EG Arnhem The Netherlands Telephone: +31-26-3840150 Fax: +31-26-3840151 E-mail: [email protected] Website: www.thenutcompany.com The Nut Company is a private Dutch-German supplier of nuts and nut ingredients to consumer markets and food industries in a number of European countries. In the Netherlands, nuts are supplied under the Jack Klijn brand name as well as for private labels. The Nut Company claims to be market leader in the private label nuts market, supplying almost every European retailer.360

On the Dutch snack nuts market The Nut Company is the number two behind Duyvis.361

4.6.3 Producers of savoury biscuits

The following information is available on companies producing savoury biscuits in the Netherlands:

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• Haust B.V. Pieter Zeemanweg 17 P.O. Box 3001 3301 DA Dordrecht The Netherlands Telephone: +31-78-6537653 Fax: +31-78-6537676 Website: www.haust.nl Haust is a subsidiary of the Dutch private food company Continental Bakeries. Haust produces various types of savoury biscuits under the brand name Haust as well as under private labels.362 On the Dutch savoury biscuits market Haust is the number four with a market share below 10%.363

• LU, General Biscuits Nederland B.V.

Tuinzigtlaan 15B P.O. Box 3538 4800 DM Breda Telephone: +31-76-5231300 Fax: +31-76-5231301 E-mail: [email protected] Website: www.lu.nl LU, General Biscuits Nederland is a subsidiary of the French listed food company Danone. LU, General Biscuits Nederland claims to be the market leader in the Dutch market for snack crackers. Brand names are LU and TUC.364 On the Dutch savoury biscuits market LU is the market leader with more than one third of the market.365

• Nestlé Nederland B.V. P.O. Box 12365 1100 AJ Amsterdam The Netherlands Telephone: +31-20-5699699 Fax: +31-20-5699215 Website: www.nestle.nl Nestlé Nederland is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In the Netherlands Nestlé markets savoury biscuits and crackers under the Buitoni brand.366 On the Dutch savoury biscuits market Nestlé is the number two with a market share above 10%.367 A supplier of palm oil ingredients to Nestlé is Loders Croklaan (see paragraph 4.2.2).368

• Van der Meulen B.V.

Mounebuorren 24-32 9074 CK Hallum The Netherlands Telephone: +31-518-438200 Fax: +31-518-431019

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E-mail: [email protected] Website: www.meulenholland.com

Van der Meulen is an independent Dutch producer of sweet and savoury biscuits, under the Van der Meulen and Melba brands as well as for private labels.369 On the Dutch savoury biscuits market Van der Meulen is the number three with a market share below 10%.370

4.6.4 Producers of meat snacks

The following information is available on companies producing meat snacks in the Netherlands:

• Bakker Lekkerkerk Holland B.V.

Twijnstraweg 14 P.O. Box 2526 2940 AA Lekkerkerk The Netherlands Telephone: +31-180-667100 Fax: +31-180-667110 E-mail: [email protected] Website: www.bakker-lekkerkerk.nl Bakker Lekkerkerk Holland is a subsidiary of the British food company Perkins Foods. Bakker produces meat snacks, savoury pancakes and vegetarian products for the consumer market, under the Bakker and Vivera brand names.371

• Beckers Nederland B.V. Jules Verneweg 84 P.O. Box 5029 5004 EA Tilburg The Netherlands Telephone: +31-13-5835200 Fax: +31-13-5835299 Website: www.beckers.nl Beckers Nederland is a subsidiary of the listed Dutch food company Koninklijke Wessanen. Beckers is a leading company in the market in Western Europe for fresh-frozen snacks and meal components. Brand name is Beckers.372

• Boekos Food Group B.V.

P.O. Box 8 5427 ZG Boekel The Netherlands Telephone: +31-492-327777 Fax: +31-492-327704 Website: www.boekos.nl Boekos Food Group is a subsidiary of the Dutch meatproduct company Zwanenberg Food Group. Boekos supplies meat products and meat snacks to the retail and foodservice markets under the brand names Boekos, Kips, Luilekkerland, Taste Original and Homburg, as well as under private labels.373

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• Brinkers Vriesvers Foodservice B.V.

Noordeinde 116 P.O. Box 71 2450 AB Leimuiden The Netherlands Telephone: +31-172-509640 Fax: +31-172-507194 E-mail: [email protected] Website: www.mad.nl

Brinkers Vriesvers Foodservice is a small supplier of meat snacks under the brand name Mad Snacks. These snacks are fried in palm oil.374

• Buitenhuis Snacks B.V.

Hoge Maat 8 3960 BE Wijk bij Duurstede The Netherlands Tel: +31-343-596659 Fax: +31-343-596655 Email: [email protected] Website: www.buitenhuis.nl Buitenhuis Snacks is a subsidiary of the Dutch Smees Group. Buitenhuis Snacks is a small supplier of meat snacks to the retail market. The brand name is Buitenhuis.375

• Cold Food B.V.

Ambacht 1 P.O. Box 33 1510 AA Oostzaan The Netherlands Telephone: +31-75-6429191 Fax: +3175-6429199 E-mail: [email protected] Website: www.coldfood.nl Cold Food is a privately-owned Dutch producer of frozen croquettes and other meatsnacks, under the brand names Van Dobben, Kwekkeboom, Laan Snacks, Rijk's and R&R.376 Cold Food is a customer of the Dutch subsidiary of Cargill, possibly for the supply of palm oil. 377

• Enkco B.V. Waagweg 5 P.O. Box 10 7450 AA Holten The Netherlands Telephone: +31-548-373737 Fax: +31-548-364345 E-mail: [email protected] Website: www.encko.com

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Encko is a subsidiary of the British food company Perkins Foods and one of the Netherlands largest, specialist butcher's companies. The company supplies all kind of meat products, including a large range of pre-baked products, to the institutional, foodservice and retail markets. Brand names are Encko and Boltjes.378

• IgloMora Groep B.V.

Stationsplein 50 P.O. Box 70510 5201 CM 's Hertogenbosch The Netherlands Telephone: +31-73-6835000 Fax: +31-73-6835100 Website: www.unilever.nl IgloMora Groep is part of the Anglo-Dutch food giant Unilever. The company has plants in Hellendoorn, Maastricht and Mol (Belgium) producing ice-cream, frozen snacks and frozen food products. IgloMora is the Dutch market leader in these markets. The brand name for frozen snacks is Mora. 379 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 4.3.2. IgloMora is a customer of the Dutch subsidiary of Cargill, possibly for the supply of palm oil. 380

• Zwanenberg Food Group B.V. Twentepoort Oost 5 P.O. Box 40 7600 AA Almelo The Netherlands Telephone: +31-546-547000 Fax: +31-546-871285 E-mail: [email protected] Website: www.zwanenberg.nl Zwanenberg Food Group is an large Dutch producer of meat products and meat snacks for the retail and food service markets. Brand names are Zwan, Zwanenberg, Linera, Huls, Hooymans and Offerman.381

4.6.5 Producers of pre-fried chips

The following information is available on companies producing pre-fried chips in the Netherlands:

• Aviko B.V.

Dr. A. Ariënsstraat 28-29 7221 CD Steenderen The Netherlands Telephone +31-575-458200 Fax: +31-575-458380 E-mail: [email protected] Website: www.aviko.com

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Aviko is a subsidiary of the Dutch cooperative food company Cosun. Aviko is a large producer of potato products, including pre-fried, frozen chips. Aviko processes 1.2 million tons of potatoes annually into 600,000 tons of chips and other potato products. Aviko claims to be the global number four in this market and the number two in Europe. Products are sold on the retail and foodservice markets under the Aviko and RAS brands, in Europe, the Middle East and Latin America. Aviko only uses sunflower oil, olive oil and palm oil in its production processes.382

• Boots Frites B.V. Kwadijkerkoogweg 8 P.O. Box 415 1440 AK Purmerend The Netherlands Tel: +31-299-412020 Fax: +31-299-412010 E-mail: [email protected] Website: www.bootsfrites.nl Boots Frites is a subsidiary of Aviko. The company has three factories in the Netherlands and Germany, producing cooled and frozen pre-fried chips for the foodservice market in the Netherlands, Germany, France and the United Kingdom. The products are fried in palm oil.383

• CêlaVíta B.V. Duit 15 P.O. Box 70 8300 AB Emmeloord The Netherlands Telephone: +31-527-639911 Fax: +31-527-639880 E-mail: [email protected] Website: www.celavita.nl CêlaVíta is a subsidiary of the Dutch agricultural cooperative Agrico. CêlaVíta supplies fresh potato products to the retail market under the CêlaVíta brand name. One of its main products are pre-fried chips, which are fried in palm oil.384

• De Fritesspecialist B.V. P.O. Box 4316 5944 ZG Arcen The Netherlands Telephone: +31-77-4737373 Fax: +31-77-4737374 E-mail: [email protected] Website: www.defritesspecialist.nl De Fritesspecialist is a subsidiary of Aviko. De Fritesspecialist is a Dutch producer of pre-fried, frozen chips which are supplied to the retail market in the Benelux countries (under the brand name Lord Chips) and to the foodservice sector in Western Europe. Major customers include De Efteling (Netherlands) and Pleasure Wood Hills (United Kingdom).385

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• Farm Frites B.V. Molendijk 108 3227 CD Oudenhoorn The Netherlands Tel: +31-181-466888 E-mail: [email protected] Website: www.farmfrites.nl Farm Frites is a large Dutch producer of pre-fried, frozen chips. Annually 1.2 millon tons of potatoes are processed into 600,000 tons of chips and other potato products. Farm Frites products are sold in 45 countries to the retail and foodservice markets, under the brand name Farm Frites. The company claims to be the number three in Europe.386

• Lamb Weston / Meijer V.o.f. Stationsweg 18a P.O. Box 17 4416 ZG Kruiningen The Netherlands Telephone: +31-113-394955 Fax: +31-113-394280 E-mail: [email protected] Website: www.lambwestonmeijer.nl Lamb Weston / Meijer is a joint-venture of the American company Lamb Weston and the Dutch potato trader C.Meijer. Lamb Weston is a subsidiary of the American Food giant ConAgra and claims to be the largest frozen potato products supplier in the world. In the Netherlands Lamb Weston Meijer is a large producer of pre-fried, frozen chips with factories in Kruiningen, Bergen op Zoom and Oosterbierum, with a combined annual output of 500,000 tons. Products are sold to the foodservice market in Europe, the Middle East and Latin America under the Lamb Weston brand. At least some products are fried in palm oil.387

• McCain Foods Holland B.V. Rijnlanderweg 766 P.O. Box 43 2130 AA Hoofddorp The Netherlands Tel: +31-20-6551700 Fax: +31-20-6534075 Website: www.mccain.nl McCain Foods is a subsidiary of the Canadian company McCain, which claims to be the global market leader in frozen potato products. In the Netherlands, McCain is a large producer of pre-fried, frozen chips which are supplied to the retail and foodservice industry under the McCain brand name.388 McCain supplies all chips served by the fast food chain McDonald’s, which accounts for 20% of McCain’s global sales. In the Netherlands, Deli XL is the second largest customer. This is a subsidiary of Ahold supplying the institutional and foodservice markets.389

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4.7 Fresh prepared foods


The market for fresh prepared foods comprises all types of fresh prepared foods which are sold in the retail sector (supermarkets and other stores), pre-packed or packed in the store. The largest segment in the Dutch market for fresh prepared foods is the market for fresh ready meals, which has a consumer value of € 98 million. The fresh pizza market has a consumer value of € 29 million, the fresh dips and dressings market € 10 million, the fresh pasta market also € 10 million and the fresh soups market € 7 million. 390 Figures for other market segments, such as salads, are unknown.

4.7.2 Producers of fresh prepared foods

The following information is available on companies producing fresh prepared foods in the Netherlands:

• FanoFineFood B.V.

Venekoterweg 3 P.O.Box 137 8430 AC Oosterwolde The Netherlands Telephone: +31-516-568899 Fax: +31-516-568800 E-mail: [email protected] Website: www.fanofinefood.nl FanoFineFood is an important supplier of salads to the Dutch retail and foodservice markets, under the brand names Abee and Fano as well as private labels.391

• Struik Foods Voorthuizen B.V. P.O. Box 70 3780 AA Voorthuizen The Netherlands Telephone: +31-342-474848 Fax: +31-342-474004 Website: www.struik.nl Struik Foods is a small, privately-owned Dutch food company, producing meat products, soups, sauces and ready-made meals under the Struik and California brand names.392

• Uniq Nederland B.V.

Industrieterrein De Pol 35 P.O. Box 182 7580 AD Losser The Netherlands Telephone: +31-53-5373400 Fax: +31-53-5383355 Website: www.uniq.nl

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Uniq Nederland is a subsidiary of the British food company Uniq. Uniq Nederland produces chilled foods, sold under the Johma, Gourmet and VH brand names. The company is the market leader in the Dutch chilled food market for snack salads and fresh sauces and dressings. Uniq Nederland also holds a leading position in the market for fresh sandwiches and rolls. 393

• Vaco B.V.

Vossendaal 1A Industrieterrein Geel-West Z3 B-2440 Geel Belgium Telephone: +32-14-564110 Fax: +32-14-564135 E-mail: [email protected] Website: www.geest.co.uk Vaco is a Dutch subsidiary of the Britsh food company Geest, but its three production facilities are all located in the surrounding of Geel in Belgium, just across the border. Vaco is nevertheless selling its fresh prepared foods mainly to the foodservice and retail sectors in the Netherlands, completely under private labels. Vaco claims to be the Dutch market leader in fresh ready meals, fresh pasta, fresh soups and fresh dips and dressings, and the number three in fresh pizzas.394

4.8 Other food products

4.8.1 Producers of coffee whitener

The following information is available on companies producing coffee whitener in the Netherlands: • Friesland Coberco Dairy Food Holding N.V.

P.O. Box 124 7940 AC Meppel The Netherlands Telephone: 0522-276276 Fax: 0522-276475 Website: www.fcdf.nl Friesland Coberco is a large Dutch dairy cooperative, which also produces fruit juices. Under the brand name Completa it is the market leader on the Dutch coffee whitener market.395

• Nestlé Nederland B.V. P.O. Box 12365 1100 AJ Amsterdam The Netherlands Telephone: +31-20-5699699 Fax: +31-20-5699215 Website: www.nestle.nl

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Nestlé Nederland is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In the Netherlands Nestlé supplies coffee whitener under the Nestlé brand.396 Nestlé coffee whitener contains palm oil. 397 A supplier of palm oil ingredients to Nestlé is Loders Croklaan (see paragraph 4.2.2).398

4.9 Soap, cosmetics and detergents


Figure 27. Dutch cosmetics market in 2002

In 2002, the Dutch cosmetics market had a total value of € 2,362 million.399

4.9.2 Oleochemical companies

The following information is available on companies producing oleochemical ingredients in the Netherlands: • Uniqema B.V.

Buurtje 1 PO Box 2 2800 AA Gouda The Netherlands Telephone: +31-182-542 911 Fax: +31-182-542 286 Website: www.uniqema.com

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Uniqema in the past was part of Unilever, but now is a subsidiary of the British chemical group ICI. Uniqema owns a vegetable oil refinery in Gouda, producing oleochemical ingredients and intermediate products from vegetable oils, including palm oil and palm kernel oil. These products are supplied to abroad range of industries, including, the food industry, personal care industry and the detergents industry. Some of these products are made from oil palm ingredients.400

4.9.3 Traders in oleochemical ingredients

The following information is available on companies trading oleochemical ingredients in the Netherlands: • Chempri B.V.

Ottergeerde 30 4941 VM Raamsdonksveer The Netherlands Telephone: +31-162-515550 Fax: +31-162-521594 E-mail: [email protected] Website: www.chempri.com Chempri is the Dutch marketing organisation of the Belgian oleochemical producer Mosselman. The product range includes vegetable, animal and mineral oils, fatty acids and fatty alcohols as well as esters. 401

• IMCD Group B.V.

Wilhelminaplein 32 P.O. Box 5802 3008 AV Rotterdam The Netherlands Telephone: +31-10-2908684 Fax: +31-10-2908680 E-mail: [email protected] Website: www.imcdgroup.com IMCD Group is an important supplier of specialty chemicals and ingredients to the food industry, the detergents industries and other industries. Some of these oleochemical ingredients are made from oil palm products.402

• Jan Dekker Nederland B.V. P.O. Box 10 1520 AA Wormerveer The Netherlands Telephone: +31-75-6479999 Fax: +31-75-6403830 E-mail: [email protected] Website: www.jandekker.com

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Jan Dekker is an independent supplier of ingredients to the food and cosmetics industries. Some of these oleochemical ingredients are made from oil palm products. The company has sales offices in France, Germany and the United Kingdom and exports 80% of its turnover.403

4.9.4 Producers of cosmetics and personal care products

The following information is available on companies producing cosmetics and personal care products in the Netherlands: • Beiersdorf Nederland B.V.

Bolderweg 2 1332 AT Almere The Netherlands Telephone: +31-36-5389100 Fax: +31-36-5389470 E-mail: [email protected] Website: www.beiersdorf.nl Beiersdorf Nederland is a subsidiary of the German cosmetics company Beiersdorf. In the Netherlands Beiersdorf produces shampoo, bath and douche products and deodorizer. Other products are imported. Brand names are 8 x 4, Atrix, Doppeldouche, Eucerin, Hansa Sport, Hansaplast, Labello, Limara and Nivea.404

• Colgate-Palmolive Nederland B.V.

Leeuwenveldseweg 5 1382 LV Weesp The Netherlands Telephone: +31-294-491949 Fax: +31-294-419226 Website: www.colgate.nl Colgate-Palmolive Nederland is a subsidiary of the American company Colgate-Palmolive, which is a leading global supplier of oral care and personal care products. Brand names in the Netherlands are Colgate, Palmolive, Unicura and Plax. The original Palmolive soap, launched in 1898, was made from palm oil and olive oil.405

• Estée Lauder B.V. Bisonspoor 338 3605 JW Maarssen The Netherlands Telephone: +31-346-586586 Fax: +31-346-586580 Website: www.elcompanies.com Estée Lauder is a subsidiary of the American company Estée Lauder Companies, one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. Brand names are Estée Lauder, Aramis, Clinique, Prescriptives, Origins, M·A·C, La Mer, Bobbi Brown, Tommy Hilfiger, jane, Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble, Kate Spade Beauty, Darphin, Michael Kors, and Rodan and Fields.406

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• Henkel Nederland B.V.

Brugwal 11 P.O. Box 2100 3430 CM Nieuwegein The Netherlands Telephone: +31-30-6073911 Fax: +31-30-6047942 Website: www.henkel.nl Henkel Nederland B.V. is a subsidiary of the German company Henkel, a leading company in personal care products. Brand names are Schwarzkopf, Fa, Gliss, Taft, Junior, Poly, Diadermine, Botanic Care, Denivit, Theramed, Vademecum, Vital and Vogue. 407

• L’Oréal Nederland B.V.

Dr. A.D. Sacharovlaan 2 P.O. Box 444 2400 AK Alphen aan de Rijn The Netherlands Telephone: +31-172-446391 Fax: +31-172-446555 E-mail: [email protected] Website: www.loreal.nl L’Oréal Nederland is a subsidiary of the French company Group L’Oréal, the largest cosmetics company in the world. Brand names are Ambre Solaire, Biotherm, Cacharel, Daniel Hechter, Elnett Satin, Elvive, Excellence, Fructis, Garnier, Giorgio Armani, Gloria VanderBilt, Harley Davidson, Helena Rubinstein, Kérastase, L'Oréal, Laura Ashley, Lancôme, Marousia, Matrix, Maybelline New York, Plénitude, Récital, Redken, Studio Line and Vichy.408

• Lever Fabergé Nederland B.V.

Tolnasingel 1 P.O. Box 1 2410 AA Bodegraven The Netherlands Telephone: +31-172-641041 Fax: +31-172-641300 Website: www.unilever.nl Lever Fabergé Nederland is part of the Anglo-Dutch food giant Unilever. The company has plants in Bodegraven and Vlaardingen which produce personal and household care products. Brand names for personal care products are Andrélon, Axe, Dove, Impulse, Lux, Pond’s, Rexona, Vaseline Intensive Care and Vinolia.409 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 4.3.2.

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• Parfums Christian Dior B.V. Max Euwelaan 55-57 P.O. Box 8806 3009 AV Rotterdam The Netherlands Telephone: +31-10-4524677 Fax: +31-10-4532029 Website: www.lvmh.com Parfums Christian Dior is a subsidiary of the French luxury goods company Groupe LVMH, which sells wines and spirits, watches and jewellery, fashion and leather goods and perfumes and cosmetics. Cosmetics brands are Christian Dior, Guerlain, Givenchy, Kenzo, Laflachère, Bliss, BeneFit, Fresh, Make Up For Ever, Acqua di Parma and Perfumes Loewe.410

• Procter & Gamble Nederland B.V. Watermanweg 100 3067 GG Rotterdam The Netherlands Telephone: +31-10-2863100 Fax: +31-10-2863131 Website: www.eu.pg.com Procter & Gamble Nederland is a subsidiary of the American listed company Procter & Gamble, one of the largest producers of personal and household care products in the world. Brand names for personal care products in the Netherlands are Head & Shoulders, Clairol, Max Factor, Hugo Boss, Lacoste, Giorgio Beverly Hills, Laura Biagiotti, Oil of Olaz, Pantène, Kukident, Vicks and Blend-a-med.411

• Sara Lee Household & Body Care B.V.

Traverse 2 P.O. Box 340 3900 AE Veenendaal The Netherlands Telephone: +31-318-545100 Fax: +31+318-545424 E-mail: [email protected] Website: www.saralee-hbc.nl Sara Lee Household & Body Care is a subsidiary of the listed American food, personal care and textile company Sara Lee. In the Netherlands, Sara Lee Household & Body Care supplies personal care products under the brand names Sanex, Badedas, Body Mist, Brylcreem, Delial, Duschdas, Monsavon, Phebo, Radox, Satina, She, S3, Williams, Prodent, Zendium, Fresh Up, Odorex, Fissan, Gabi, Proderm and Zwitsal.412 The following Sara Lee products contain oil palm products: Zwitsal anti-berg, Sanex hand soap, Zwitsal hand soap and Zwitsal cream soap.413

4.9.5 Producers of detergents and household care products

The following information is available on companies producing detergents and household care products in the Netherlands:

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• Colgate-Palmolive Nederland B.V.

Leeuwenveldseweg 5 1382 LV Weesp The Netherlands Telephone: +31-294-491949 Fax: +31-294-419226 Website: www.colgate.nl Colgate-Palmolive Nederland is a subsidiary of the American company Colgate-Palmolive, a leading global supplier of oral and personal care products. In the Netherlands Colgate-Palmolive also sells household care products under the Ajax brand name.414

• Henkel Nederland B.V.

Brugwal 11 P.O. Box 2100 3430 CM Nieuwegein The Netherlands Telephone: +31-30-6073911 Fax: +31-30-6047942 Website: www.henkel.nl Henkel Nederland B.V. is a subsidiary of the German company Henkel, a leading company in detergents. Brand names are Dixan, Wipp, Sil and Persil.415

• Lever Fabergé Nederland B.V.

Tolnasingel 1 P.O. Box 1 2410 AA Bodegraven The Netherlands Telephone: +31-172-641041 Fax: +31-172-641300 Website: www.unilever.nl Lever Fabergé Nederland is part of the Anglo-Dutch food giant Unilever. The company has plants in Bodegraven and Vlaardingen which produce personal and household care products. Brand names for detergents and household care products are Cif, Glorix, Lux, Omo, Robijn, Sun and Sunil.416 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 4.3.2.

• Procter & Gamble Nederland B.V. Watermanweg 100 3067 GG Rotterdam The Netherlands Telephone: +31-10-2863100 Fax: +31-10-2863131 Website: www.eu.pg.com

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Procter & Gamble Nederland is a subsidiary of the American listed company Procter & Gamble, one of the largest producers of personal and household care products in the world. Brand names for household care products and detergents in the Netherlands are Ariel, Dash, Dreft, Vizir, Febrèze, Antikal and Swiffer. 417

• Sara Lee Household & Body Care B.V.

Traverse 2 P.O. Box 340 3900 AE Veenendaal The Netherlands Telephone: +31-318-545100 Fax: +31+318-545424 E-mail: [email protected] Website: www.saralee-hbc.nl Sara Lee Household & Body Care is a subsidiary of the listed American food, personal care and textile company Sara Lee. In the Netherlands, Sara Lee Household & Body Care supplies detergents under the brand names Biotex and Neutral.418

4.10 Animal feed


The animal feed industry in the Netherlands accounts for the total domestic usage of PKM, although figures in Table 40 differ slightly from figures in Table 37. The animal feed industry also uses modest amounts of PKO. Apart from PKM and PKO, the Dutch animal feed industry is also an importer consumer of palm oil. According to a recent report of the industry organisation Productschap Diervoeder, palm oil usage by the Dutch animal feed industry doubled in 2001 to 80,000 tonnes. This equals around 17% of Dutch domestic palm oil usage (see Table 33). Around 40,000 tonnes is used in refined form in milk replacers (for calves) and around 40,000 tonnes is used in crude form in animal feed (mainly for pigs). 419 This last figure is higher than mentioned in the official statistics of the Productschap Diervoeder (see Table 40). But these statistics do indicate a strong growth of palm oil usage by the animal feed industry: from 1.2 tonnes in 1997/98 to 24.3 tonnes four years later. 420

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Table 40 Animal feed production in the Netherlands (in 1,000 MT)421

Product 2001 2002 Share

Cattle and calf feed 3,640 3,420 25.7%

Pig feed 5,910 5,160 38.8%

Poultry feed 3,480 3,220 24.2%

Milk replacers 750 750 5.6%

Other feeds 750 740 5.6%

Total 14,530 13,290 100%

Oil palm products content (in 1,000 MT) Palm oil in milk replacers ? 40 0.3%

Palm oil in other animal feed 17 24 0.2%

Palm kernel meal 838 741 5.6%

Palm kernel oil 1 3 0.0%

Total 856 808 6.1%

4.10.2 Producers of animal feed products

The Dutch animal feed sector consists of 200 companies, but just ten companies account for 90% of the total production volume. Most companies are organized in the Nederlandse Vereniging Diervoederindustrie (Nevedi). Five or six companies are big international players.422 Specific information on companies producing animal feed products in the Netherlands is not included.

4.11 Financial institutions

4.11.1 Private commercial and investment banks

Commercial banks extend loans to companies and investment banks help companies with issuing shares and bonds. The information below details the involvement of Dutch private commercial and investment banks in the financing of the Indonesian oil palm plantation sector (see paragraph 2.3): • ABN AMRO Bank N.V.

P.O. Box 283 1000 EA Amsterdam The Netherlands Tel: +31-20-6289393 Website: www.abnamro.com Email: [email protected] ABN AMRO Bank is one of the three largest banks in the Netherlands. It aims to become a global player, and has one of the most extensive networks of international offices in the banking industry. In Indonesia, ABN AMRO Bank is among the top four foreign banks.

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ABN AMRO Bank owns the investment bank Hoare Govett (United Kingdom), and has an investment banking joint-venture - ABN AMRO Rothschild - with NM Rothschild & Sons (see paragraph 6.11.1).423 ABN AMRO Bank adopted a new policy on Forestry & Tree Plantations in October 2001, which limits the bank’s activities in the oil palm plantation sector to clients that adhere to the following basic requirements:

• The company is not involved in burning forestland for oil palm development; • The company is not clearing tropical rainforest for oil palm development; • The company respects the rights and wishes of local communities; • The company respects Indonesia's law and relevant international conventions.424

The information below details the involvement of ABN AMRO Bank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• Astra Agro Group

• ABN AMRO Bank and ABN AMRO Rothschild managed the initial public offering

(IPO) of PT Astra Agro Lestari Tbk. on the Stock Exchange of Jakarta in December 1997. ABN AMRO Bank raised an estimated US$ 30 million for the company. 425

• ABN AMRO Bank co-managed the issuance by PT Astra Agro Lestari Tbk. of five

year-bonds with a total value of Rp 500 billion (US$ 69 million) on the Indonesian capital market in March 2000. ABN AMRO Bank raised an estimated US$ 34.5 million for the company. 426

• Bakrie Group

• ABN AMRO Bank co-owns a shareholding of 52.5% of PT Bakrie Sumatera Plantations since November 2001. This share is valued at US$ 0.5 million. 427

• Kumpulan Guthrie Group

• ABN AMRO Bank participated in the amount of US$ 44.9 million in an Islamic loan

of RM 1.5 billion (US$ 394.7 million) to Kumpulan Guthrie Berhad in December 2000, to finance the acquisition of the Holdiko Plantation Group. 428

• ABN AMRO Bank participated in the syndicate managing an international Islamic

US$ 150 million bond issuance by Kumpulan Guthrie Berhad in December 2001 and underwrote US$ 18.75 million. The bond issuance was used to repay the December 2000 loan.429

• Napan and Risjadson Groups

• ABN AMRO Bank participated in the amount of US$ 1.5 million in a US$ 42.0 million

syndicated loan to PT PP London Sumatra Indonesia Tbk. in November 1994. The loan was refinanced in May 1996. 430

• ABN AMRO Bank participated in the amount of US$ 5.0 million in a US$ 141.5

million syndicated loan to PT Pan London Sumatra Plantation in November 1994. The loan was refinanced in May 1996. 431

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• ABN AMRO Bank participated in the initial public offering (IPO) of PT PP London Sumatra Indonesia Tbk. on the Jakarta and Surabaya stock exchanges in June 1996. ABN AMRO Bank raised an estimated US$ 2.4 million for the company. 432

• ABN AMRO Bank manages the financing company LonSum Finance BV for PT PP

London Sumatra Indonesia Tbk. since October 1997. 433

• Sinar Mas Group

• ABN AMRO Bank co-arranged a syndicated loan of US$ 150 million to PT SMART Tbk. in April 1995, and participated in the amount of US$ 8.0 million. US$ 2.44 million was repaid in April 1998, US$ 5.56 million was refinanced in April 2000. 434

• ABN AMRO Bank had a working capital facility of Rp 19.6 billion outstanding to PT

SMART Tbk. at the end of 1995, which had increased to Rp 22.2 billion (US$ 9.3 million) by the end of 1996. At the end of both 1999 and 2000, SMART’s short-term credit facility with ABN AMRO Bank amounted to US$ 1 million. The loan was restructured in April 2000, and was repaid in March 2001. 435

• ABN AMRO Bank participated in the initial public offering (IPO) of Golden Agri-

Resources Ltd. on the Stock Exchange of Singapore in July 1999. The company raised US$ 360.2 million from the IPO. ABN AMRO Rothschild was responsible for raising US$ 24.1 million for the company. 436

• ABN AMRO Bank participated in the amount of an estimated US$ 4.0 million in two

syndicated loans of US$ 30.8 million and Rp 113.1 billion (US$ 14.7 million) to PT SMART Tbk. in April 2000, to refinance the second tranche of the April 1995 loan. 437 ABN AMRO Bank commented in November 2001: “The facilities to SMART will be sold at a loss after the restructuring has been finalised by the end of April 2002. We are legally obligated to hold on to our participation until the restructuring is completed.”438

• Wilmar Group

• ABN AMRO Bank participated in a one-year US$ 1,750 million revolving credit facility for Archer Daniels Midland Co. in March 1999. The facility matured in March 2000. 439

• ABN AMRO Bank participated in a one-year US$ 1,150 million revolving credit

facility for Archer Daniels Midland Co. in March 2001. The facility matured in March 2002. 440

• ABN AMRO Bank participated in a one-year US$ 900 million revolving credit facility

for Archer Daniels Midland Co. in March 2002. The facility matured in March 2003. 441

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• Fortis Bank B.V.

P.O. Box 2531 3500 GM Utrecht The Netherlands Tel: +31-30-2576655 Fax: +31-30-2577929 Website: www.fortisbank.com E-mail: [email protected] Fortis Bank is the banking branch of the Fortis Group, a leading Dutch-Belgian banking and insurance group. Fortis Bank was created by the merger of several Dutch and Belgian banks, including the globally operating investment and trust bank MeesPierson.442 Fortis Bank agreed in October 2001 to limit the bank’s activities in the oil palm sector to clients that adhere to the following basic requirements:

• The company is not involved in burning forestland for oil palm development; • The company is not clearing tropical rainforest for oil palm development; • The company respects the rights and wishes of local communities; • The company respects Indonesia's law and relevant international conventions.

However, Fortis Bank will not apply the criteria on general trade financing for the oil palm sector, because it is not connected to a specific company. 443 The information below details the involvement of Fortis Bank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3): • General

• In July 2000, Fortis Bank and Asuransi Jasindo set up a US$ 500 million trade

financing scheme to assist Indonesian exporters of - amongst other products - palm oil. The estimated share for palm oil is US$ 100 million.444


• Fortis Bank managed the Dutch financing company Pan London Sumatra Finance

BV for PT Pan London Sumatra Plantation from September 1997, but this company was dissolved in October 2002. 445

• Raja Garuda Mas and Salim Groups

• Fortis Bank managed the Dutch financing company Inti Indosawit International BV

for PT Inti Indosawit Subur since May 1997, but ended this relationship in 2002. 446

• Fortis Bank managed the Dutch financing company Asian Agro International BV for PT Inti Indosawit Subur since September 1997, but ended this relationship in 2002. 447

• Salim Group

• Fortis Bank managed the Dutch financing company Purply Holding BV for PT

Indofood Sukses Makmur since June 1997, but ended this relationship in 2002. 448

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• Sinar Mas Group

• Fortis Bank managed the Dutch financing company Purimas International Finance Company BV for PT Purimas Sasmita since August 1996, but this company was dissolved in December 1999. 449

• Unknown

• In 1995, MeesPierson was appointed by one of Indonesia's largest palm oil

producers to arrange some US$ 40 million for the establishment of a new oil palm plantation. Part of the deal involved MeesPierson arranging long-term off take agreements with three end-buyers. It is unclear if this deal materialized at all and if so with which company.450

• ING Bank B.V.

De Amsterdamse Poort P.O. Box 1800 1000 BV Amsterdam The Netherlands Telephone: +31-20-5639111 Fax: +31-20-5635700 Website: www.ingbank.nl The Dutch banking and insurance group ING is one of the largest insurance groups in the world. In the past years, ING has developed its banking activities agressively through foreign acquisitions. ING Bank acquired the British investment bank Baring Brothers in 1996, the Belgian bank Banque Bruxelles Lambert in 1998, and the German banking group Berliner Handels- und Frankfurter Bank in 1999.451 ING Bank agreed in February 2002 to limit the bank’s activities in the oil palm sector to clients that adhere to the following basic requirements: 452

• The company is not involved in burning forestland for oil palm development; • The company is not clearing tropical rainforest for oil palm development; • The company respects the rights and wishes of local communities; • The company respects Indonesia's law and relevant international conventions.

On its website ING states: “ING has sharpened its credit conditions for companies or projects that can possibly damage the tropical rain forests. ING will lay down the conditions that there can be no connection between deforesting and a new plantation, that the local environment, social and labour-law-related regulations are observed and that the project meets the regulations of the World Bank's Forest Policy. Either through its own research or through research by third parties, ING will check the environmental effects and the antecedents of the company applying for a credit when it comes to respecting the rights of the local population.” 453

The information below details the involvement of ING Bank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3): • Kuok Group

• ING Bank is one of the principal bankers of PPB Oil Palms Berhad.454

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• ING Bank participated in the initial public offering (IPO) of PT PP London Sumatra Indonesia Tbk. on the Jakarta and Surabaya stock exchanges in June 1996. ING Bank raised an estimated US$ 2.4 million for the company. 455

• Lyman Group and Raja Garuda Mas Groups

• ING Bank arranged a syndicated loan of US$ 6 million for PT Kalimantan Sanggar

Pusaka in November 1996. The present status of this loan is unknown. 456

• Raja Garuda Mas Group

• ING Bank participated in the amount of US$ 10.0 million in a US$ 95 million syndicated loan to PT Asianagro Lestari in April 1997. The loan matured in April 2002. The present status is unknown. 457

• Salim Group

• ING Bank co-arranged a loan facility of US$ 250 million for PT Indofood Sukses

Makmur Tbk. in April 1997, to finance the acquisition of several edible oil companies and plantations. ING Bank participated in the amount of an estimated US$ 20 million. The loan matured in 2002. 458

• ING Bank managed the placement of 254 million new shares of First Pacific

Company Ltd. with institutional investors in June 1999. This raised US$ 197.4 million of new equity for the company, which was used to finance the acquisition of a 40% shareholding in PT Indofood Sukses Makmur Tbk. from the Salim family for US$ 650 million in June 1999. 459

• ING Bank co-managed the issuance by PT Indofood Sukses Makmur of five-year

bonds with a total value of Rp 1,000 billion (US$ 125 million) on the Indonesian capital market in July 2000. The participation of ING is estimated at US$ 41.7 million. 460

• ING Bank advised PT Indofood Sukses Makmur Tbk. on acquiring a 30%

shareholding in Golden Agri-Resources for US$ 97.6 million from the Sinar Mas Group, in May 2001. However, the deal was cancelled in August 2001. 461

• ING Bank arranged a syndicated two-year US$ 100 million loan for Indofood in April

2002. The loan will mature in April 2004. We estimate ING Bank’s own participation at US$ 20 million. 462

• ING Bank co-managed a Rp 1,000 billion (US$ 125 million) bond issuance by PT

Indofood Sukses Makmur in June 2003. ING Bank’s share in the issuance is estimated at US$ 31.3 million. 463

• Sinar Mas Group

• ING Bank co-arranged a syndicated loan of US$ 150 million to PT SMART Tbk. in

April 1995, and participated in the amount of US$ 8.0 million. US$ 2.44 million was repaid in April 1998 and US$ 5.56 million was refinanced in April 2000. 464

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• ING Bank had short-term notes of Rp 9.2 billion (US$ 4.0 million) outstanding to PT SMART Tbk. at the end of 1995. During 1996, these notes were paid off. 465

• ING Bank co-managed the initial public offering (IPO) of Golden Agri-Resources Ltd.

on the Singapore Stock Exchange in July 1999. The company raised US$ 360.2 million from the IPO. ING was responsible for raising US$ 139.9 million for the company. 466

• ING Bank participated in the estimated amount of US$ 4.0 million in two syndicated

loans of US$ 30.8 million and Rp 113.1 billion (US$ 14.7 million) to PT SMART Tbk. in April 2000, to refinance the second tranche of the April 1995 loan. 467

• Sungai Budi Group

• ING Bank participated in the amount of US$ 2.5 million in a US$ 40 million

syndicated loan to PT Tunas Baru Lampung in June 1997. The loan matured in June 2000. 468

• Wilmar Group

• ING Bank participated in a one-year US$ 1,150 million revolving credit facility for Archer Daniels Midland Co. in March 2001. The facility matured in March 2002. 469

• ING Bank participated in a one-year US$ 900 million revolving credit facility for

Archer Daniels Midland Co. in March 2002. The facility matured in March 2003. 470 • NIB Capital B.V.

Carnegieplein 4 P.O. Box 380 2501 BH Den Haag The Netherlands Telephone: +31-70-3425425 Fax: +31-70-3651071 Website: www.nibcapital.com NIB Capital Bank is a Dutch investment bank, ranking among the top-ten of Dutch banks. It recently changed its name from Nationale Investeringsbank N.V. It used to be government owned, but in early 1999 it was acquired by the Dutch pension funds ABP and PGGM.471 The information below details the involvement of NIB Capital in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• NIB Capital Bank participated in the amount of US$ 1.5 million in a US$ 42.0 million

syndicated loan to PT PP London Sumatra Indonesia Tbk. in November 1994. The loan was refinanced in May 1996. 472

• NIB Capital Bank participated in the amount of US$ 5.0 million in a US$ 141.5

million syndicated loan to PT Pan London Sumatra Plantation in November 1994. The loan was refinanced in May 1996. 473

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• NIB Capital Bank participated in the amount of US$ 6.7 million in a US$ 132 million syndicated loan to PT PP London Sumatra Indonesia Tbk. in May 1996. At the end of 2000 US$ 122 million was outstanding, plus deferred interest. 474

• NIB Capital Bank participated in the amount of US$ 3.3 million in a US$ 65 million

syndicated loan to PT Pan London Sumatra Plantation in May 1996. The loan was refinanced in November 1996. 475

• Sinar Mas Group

• NIB Capital Bank participated in the amount of US$ 7.25 million in the first tranche

of a syndicated loan of US$ 150 million to PT SMART Tbk. in April 1995. The first tranche was repaid in April 1998.476

• Rabobank Nederland B.V.

Croeselaan 18 P.O. Box 17100 3500 HG Utrecht The Netherlands Telephone: + 31-30-2160000 Fax: +31-30-2162218 Website: www.rabobank.com E-mail: [email protected] Rabobank is one of the three largest banks in the Netherlands. It is a cooperative bank, with its roots in the Dutch agricultural sector. It aims to become a global leader in financing the agricultural sector and commodity trading.477 Rabobank adopted a new policy on the oil palm sector in October 2001, which limits the bank’s activities in the oil palm plantation sector to clients that adhere to the following basic requirements:

• The company is not involved in burning forestland for oil palm development; • The company is not clearing tropical rainforest for oil palm development; • The company respects the rights and wishes of local communities; • The company respects Indonesia's law and relevant international conventions. 478

The information below details the involvement of Rabobank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• General

• In May 1999, Rabobank together with FMO and IFC set up a US$ 140 million

revolving facility to provide export oriented Indonesian corporates with a source of working capital and to expand the ability of international banks to take exposure to Indonesian corporates in trade finance transactions. Rabobank participates in the amount of US$ 40 million, of which an estimated US$ 10 million is intended for the oil palm sector. 479


• Rabobank issued a working capital facility with a maximum value of US$ 15.0 million

to PT Astra Agro Lestari in 2002. 480

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• Rabobank was appointed by PT Astra Agro Lestari in February 2003 to help it sell stakes in 10 non-oil palm plantation subsidiaries to potential investors. 481

• Bakrie Group

• Rabobank participated in the amount of US$ 4.0 million in a US$ 75 million

syndicated loan to PT Bakrie Sumatera Plantations in October 1996. The loan was restructured in October 2000, and will mature in early 2004. 482

• Carson Cumberbatch Group

• Rabobank extended a loan of US$ 10.8 million to PT Agro Indomas in December

1998. The loan is due in December 2007. 483 • Rabobank extended a loan of US$ 5.3 million to PT Agro Indomas in July 2001. The

loan is due in December 2007. 484 • Rabobank is one of the principal bankers of PT Agro Indomas. 485

• Hasko Group

• Rabobank participated in the amount of US$ 3.0 million in a syndicated loan of US$

45.0 million to PT Sumalindo Lestari in August 1995, which would mature in August 1998. The loan was restructured and is probably still partially outstanding. 486


• Rabobank arranged a syndicated US$ 40 million term loan for five subsidiary

companies of the Minamas Plantation Group in March 2003 and participated in the amount of US$ 16.0 million. 487


• Rabobank co-arranged a US$ 183.5 million bridge facility for PT Pan London

Sumatra Plantation in July 1994. The loan was refinanced in November 1994. 488

• Rabobank co-arranged a US$ 42.0 million syndicated loan to PT PP London Sumatra Indonesia Tbk. in November 1994 and participated in the amount of US$ 5.0 million. The loan was refinanced in May 1996. 489

• Rabobank co-arranged a US$ 141.5 million syndicated loan to PT Pan London

Sumatra Plantation in November 1994 and participated in the amount of US$ 17.2 million. The loan was refinanced in May 1996. 490

• Rabobank co-arranged a US$ 132 million syndicated loan to PT PP London

Sumatra Indonesia Tbk. in May 1996, and participated in the amount of US$ 13.4 million. The loan was due in May 2001. At the end of 2000 US$ 122 million was outstanding, plus deferred interest. 491

• Rabobank co-arranged a US$ 65 million syndicated loan to PT Pan London

Sumatra Plantation in May 1996, and participated in the amount of US$ 6.6 million. The loan was refinanced in November 1996. 492

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• Rabobank co-arranged a US$ 65 million syndicated loan to PT Pan London Sumatra Plantation in November 1996, and participated in the amount of US$ 7.0 million. The loan was due in November 2001, but was possibly refinanced in September 1997. 493

• Rabobank entered into a US$ 2.9 million lease agreement with PT PP London

Sumatra Indonesia Tbk. in January 1997. This lease agreement was restructured and repaid in 2001. 494

• Oriental Group

• Rabobank participated in the amount of Rp 40 billion (US$ 17.1 million) in a

syndicated loan of Rp 80 billion (US$ 34.1 million) to PT Gunung Maras Lestari in April 1997. The loan matured in April 2002. 495


• In April 1997 Rabobank co-arranged a US$ 95 million syndicated loan to PT

Asianagro Lestari, and participated in the amount of US$ 16.0 million. The loan matured in April 2002, but the present status is unknown. 496

• Sinar Mas Group

• Rabobank co-arranged a syndicated loan of US$ 150 million to PT SMART Tbk. in

April 1995, and participated in the amount of US$ 8.0 million. US$ 2.44 million was repaid in April 1998, US$ 5.56 million was refinanced in April 2000. 497

• Rabobank participated in an estimated amount of US$ 4.0 million in two syndicated

loans of US$ 30.8 million and Rp 113.1 billion (US$ 14.7 million) to PT SMART Tbk. in April 2000, to refinance the second tranche of the April 1995 loan. 498

• Wilmar Group

• Rabobank participated in a one-year US$ 1,750 million revolving credit facility for Archer Daniels Midland Co. in March 1999. The facility matured in March 2000. 499

• Rabobank participated in a one-year US$ 1,250 million revolving credit facility for

Archer Daniels Midland Co. in March 2000. The facility matured in March 2001. 500

• Rabobank participated in a one-year US$ 1,150 million revolving credit facility for Archer Daniels Midland Co. in March 2001. The facility matured in March 2002. 501

• Rabobank participated in a one-year US$ 900 million revolving credit facility for

Archer Daniels Midland Co. in March 2002. The facility matured in March 2003. 502

• Rabobank co-arranged a three-year US$ 40 million syndicated loan for Wilmar Holdings in March 2002.503

• Rabobank in August 2002 co-arranged a three-year US$ 150 million letter-of-credit

(L/C) for China National Cereals, Oils and Foodstuffs Import & Export Corporation (COFCO) to support its US commercial paper (CP) programme.504

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4.11.2 Foreign development banks

Foreign development banks aim of to contribute to the (sustainable) economic development of other, low-income countries. The information below details the involvement of Dutch foreign development banks in the financing of the Indonesian oil palm plantation sector: • FMO N.V.

Anna van Saksenlaan 71 P.O. Box 93060 2509 AB Den Haag The Netherlands Telephone: +31-70-3149696 Fax: +31-70-3246187 E-mail: [email protected] Website: www.fmo.nl The Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) is the Dutch development bank. It is owned jointly by the Dutch state (51%), Dutch banks (42%), the two main trade union federations FNV and CNV, and 120 other companies and persons.505 The information below details the involvement of FMO in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• General

• In May 1999 the FMO together with Rabobank and IFC set up a US$ 140 million

revolving facility to provide export oriented Indonesian corporates with a source of working capital and to expand the ability of international banks to take exposure to Indonesian corporates in trade finance transactions. The FMO participates in the amount of US$ 50 million, of which an estimated US$ 12.5 million is intended for the oil palm sector.506

• Sinar Mas Group

• FMO extended a US$ 21 million loan to PT Maskapai Perkebunan Leidong West

Indonesia in July 1996. At the end of 2000, the outstanding loan of US$ 6.8 million was repayable on demand. 507

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Chapter 5 The market for oil palm products in Sweden

5.1 Import of oil palm products

5.1.1 Palm oil import figures

Palm oil imports into Sweden since 1995 increased by 124% to 75,700 tonnes, equalling 2% of total EU palm oil imports (see Table 24).

Table 41 Palm oil imports into Sweden by country (in 1,000 MT) 508


Malaysia 14 10 27 38 62 64 357% 84%

Indonesia 2 1 1 0 0 0 -100% 0%

The Netherlands 15 27 16 19 6 8 -47% 11%

Other EU-countries 3 6 4 1 2 4 33% 5%

Total 34 44 48 58 70 76 124% 100%

As Table 41 shows, direct Indonesian palm oil imports into Sweden are negligible. Malaysia is the market leader with a 84% market share. Re-export of Malaysian and/or Indonesian palm oil from the Netherlands and other EU-countries takes a 16% share of the Swedish market. Of total Swedish palm oil imports, 1% is re-exported again.

5.1.2 PKO import figures

PKO imports into Sweden since 1995 decreased with 29% to 2.5 tonnes in 2002, equivalent to 0.4% of total PKO imports into the EU (see Table 27).

Table 42 PKO imports into Sweden by country (in 1,000 MT) 509


Malaysia 1.2 4.8 4.4 3.2 1.6 1.4 17% 56%

The Netherlands 0.8 0.5 0.3 0.5 0.5 1.0 25% 40%

Indonesia 1.5 0.0 0.0 0.0 0.0 0.0 -100% 0%

Other countries 0.0 0.0 0.0 0.0 0.0 0.1 >100% 4%

Total 3.5 5.3 4.7 3.6 2.1 2.5 -29% 100%

Indonesia’s direct PKO exports to Sweden are negligible. Malaysia has a 56% market share and re-exports of Indonesian and/or Malaysian PKO from the Netherlands accounts for 40% of Swedish imports.

5.1.3 PKM import figures

PKM imports into Sweden since 1995 decreased with 16% to 83.5 tonnes in 2002, equivalent to 4% of total PKM imports into the EU (see Table 30).

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Table 43 PKM imports into Sweden by country (in 1,000 MT) 510


Indonesia 2 4 7 16 13 25 >1000% 30%

Malaysia 5 2 11 7 5 7 40% 8%

The Netherlands 43 59 51 63 72 40 -7% 48%

Germany 47 14 11 8 7 7 -85% 8%

Other EU-countries 1 0 0 6 2 3 200% 4%

Other countries 1 2 1 0 7 1 0% 1%

Total 100 81 81 99 107 84 -16% 100%

Indonesian PKM imports increased strongly since 1995, and now account for 30% of the Swedish market. Malaysia has a much smaller market share (8%). Re-exports of Indonesian and/or Malaysian PKM from the Netherlands, Germany and other EU-countries account for 60% of the Swedish PKM market, but this share is decreasing.


The following information is available on companies importing and trading (crude) oil palm products in Sweden: • Karlshamns AB



The following information is available on companies transporting and storing (crude) oil palm products in Sweden: • Vopak Terminals Gothenburg AB

Brännoljegatan 1 Skarvikshammen 418 34 Göteborg Sweden Telephone: +46-31-648321 Fax: +46-31-548095 E-mail: [email protected] Website: vegoil.vopak.com The Dutch company Vopak is the world leader in chemicals and oil logistics and chemical distribution. Its business unit Vopak Vegoil Logistics operates one of the largest terminals and inland fleets dedicated to vegetable oils and fats and oleochemicals. The company owns a vegetable oil storage facilities in Sweden: Vopak Terminals Gothenburg (776,000 m3 storage facility for petroleum products, chemicals and vegetable oils).511

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The edible oil refining industry in Sweden is organized in the Swedish Crushers and Refiners Association (SCRA). The following information is available on companies refining crude palm oil and palm kernel oil in Sweden: • Karlshamns AB

Västra Kajen 374 82 Karlshamn Sweden Telephone: +46-454-82000 Fax: +46-454-752019 E-mail: [email protected] Website: www.karlshamns.com Karlshamns is one of the world’s leading manufacturers of high value added speciality vegetable oils and fats. Karlshamns delivers speciality fats all over the world and is the market leader in the Nordic countries as well as in Central and Eastern Europe. The company supplies to customers in the food, chocolate, and confectionery industries, in the cosmetic industry, in the animal feed industry and in technical industries. The main plant of the company in Karlshamn processes 200,000 tonnes of crude vegetable oils annually, probably including palm oil and palm kernel oil. The company also owns processing facilities in the United Kingdom and the Netherlands.512 Karlshamns processes various types of vegetable oils, including palm oil and PKO. The company states that all its palm oil imports are supplied by oil palm plantations in West Malaysia.513 But according to another source, Karlshamns also buys Indonesian oil palm products from Indonesian suppliers, including the PT Bukit Kapur Reksa refinery (Wilmar Group). 514



In 2001, 46 companies in Sweden were involved in producing crude and refined oils and fats and margarine. Total retail sales of margarine, spreads and frying fats amounted to SEK 2,669 million in 2002 and total retail sales of edible oils amounted to SEK 563 million. 515 The total sales volume of margarine and spreads in Sweden was 138,000 tonnes in 2001. 516 In 2001, 50 companies produced condiments and seasonings in Sweden. In 2002, total retail sales of sauces and seasonings in Sweden amounted to SEK 2,623 million.517


The following information is available on companies producing margarine, other table spreads and frying fats in Sweden:

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• Alba Handels AB

Albavägen 4 Box 74 240 10 Dalby Sweden Telephone: +46-46-205600 Fax: +46-46-201186 E-mail: [email protected] Website: www.alba.se Alba Handels AB is a medium-sized Swedish producer of margarine,oils and frying fats for the foodservice market in Sweden and other European countries. Brand names are Alba and Taste of Sweden.518

• Arla Foods amba

Torsgatan 14 10546 Stockholm Sweden Tel: +46-8-7895000 Fax: +46-8-209826 E-mail: [email protected] Website: www.arlafoods.com Arla Foods amba is Europe’s largest dairy company. It was created in 2000 by the merger of MD Foods (Denmark) and Arla (Sweden). Arla Foods is a co-operative owned by approximately 13,650 milk producers in Denmark and Sweden. The 7,100 Danish co-operative owners supply 4.0 billion kilogramme milk to Arla Foods every year (corresponding to 90% of all milk production in Denmark) while the 6,500 Swedish owners supply 2.2 billion kilogramme (60% of Sweden’s milk production). 519 One of Arla’s most important products is Lurpak butter, accounting for 13% of turnover. Lurpak is also produced in a light, spreadable variety. This spreadable butter contains some vegetable oil, possibly palm oil.520 On the Swedish margarine and spreads market Arla Foods is the number three with a 22.0% market share.521

• Carlshamn Mejeri AB

Vastra Kajen 374 82 Karlshamn Sweden Telephone: +46-454-82500 Fax: +46-454-39365 E-mail: [email protected] Website: www.carlshamn.com Carlshamn Mejeri is a subsidiary of the Finnish food and chemicals company Raisio Group. Carlshamn Mejeri was a diary company, producing margarine and ice cream. But its ice cream business is sold to Ingman Foods (see paragraph 5.5.4) and its margarine production is transferred by Raisio to Finland and Poland. Probably Carlshann Mejeri still serves as the sales office of Rasio’s margaine and spreads brands, Carlshamn and Benecol.522 On the Swedish margarine and spreads market Raisio is the number two with a 25.3% market share.523

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• Norrmejerier ek. för.

Mariehemsv 10 906 52 Umeå Sweden Telephone: +46-90-182800 Fax: +46-90-182800 Website: www.norrmejerier.se Norrmejerier is Sweden’s fourth-largest dairy cooperative, owned by the dairy farmers in Norrbotten, Västerbotten and the northern part of Ångermanland. The company processes 5.7% of Swedish milk production into a range of dairy products. Under the brand name Bregott Norrmejerier also produces a butter spread, which is made from butter and unhardened rape seed oil. The product is available as normally salted, extra salted or ecological.524 On the Swedish margarine and spreads market Norrmejerier has a 4.2% market share.525

• Skånemejerier ek. för.

Von Troils väg 1 205 03 Malmö Telephone: +46-40-313900 Fax: +46-40-947358 E-mail: [email protected] Website: www.skanemejerier.se Skånemejerier is the second largest Swedish dairy cooperative, owned by dairy farmers in southern Skåne and Småland. Skånemejerier processes 12.5% of Swedish milk production into a range of dairy products. The company has contracted Arla Foods’ plant in Götene to produce butter and margarine. Margarine is sold under the brand name Skånemejerier.526 On the Swedish margarine and spreads market Skånemejerier has a 4.0% market share.527

• Unilever Bestfoods AB

Zenitgatan 1 Box 721 251 07 Helsingborg Sweden Telephone: +46-42-177300 Fax: +46-42-177337 Website: www.unilever.se Unilever Bestfoods is part of the Anglo-Dutch food giant Unilever. In Sweden the company sells edible oils, margarine, frying fats, sauces, mayonnaise, tea, soups and cream cheese on the retail and foodservice markets. Brand names for oils, fats, margarine and spreads are Lätta, Milda, Becel, Melba, Flora, Boursin, Tre Ess, Pané, Phase and Bertolli. Some of these products probably contain palm oil.528 Unilever Bestfoods is the largest producer of margarine in Sweden with a 40.5% market share.529 On a global scale Unilever buys over one million tonnes of palm oil, or 6-8% of the total world production, every year, mostly from Malaysia and Indonesia.530 Indonesian suppliers of oil palm to Unilever include:

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5.3.3 Producers of food ingredients

The following information is available on companies producing food ingredients in Sweden: • BakeMark Sverige AB

Årsta Skolgränd 12 a 11743 Stockholm Sweden Telephone: +46-8-6193400 Fax: +46-8-6193440 Website: www.bakemark.se BakeMark Sverige is a subsidiary of the Dutch sugar, confectionery and food ingredients company CSM. Bakemark supplies oils, fats, margarines and other ingredients to the bakery sector. Some of these products contain palm oil and palm kernel oil. 537

• KåKå AB

Viktoriagatan 6 252 29 Helsingborg Sweden Telephone: +46-42-195200 Fax: +46-42-143016 Website: www.kaka.se KåKå is a subsidiary of the Norwegian food company Orkla Foods. KåKå is an important supplier of bake-off products, margarine, and all kinds of ingredients to the Swedish bakery sector.538

5.3.4 Producers of soup and sauces

The following information is available on companies producing soup and sauces in Sweden:

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• Alba Handels AB

Albavägen 4 Box 74 240 10 Dalby Sweden Telephone: +46-46-205600 Fax: +46-46-201186 E-mail: [email protected] Website: www.alba.se Alba Handels AB is a medium-sized Swedish producer of mayonnaise and sauces for the foodservice market in Sweden and other European countries. Brand names are Alba and Taste of Sweden.539

• Masterfoods AB Box 860 201 80 Malmö Sweden Telephone: +46-40-350600 Fax: +46-40-230957 Website: www.unclebens.se Masterfoods is a subsidiary of the American family-owned food company Mars Inc. Masterfoods is a major player on the Swedish sauces market with the Dolmio and Uncle Ben’s brands.540

• Procordia Food AB Ellingevägen 14 241 81 Eslöv Sweden Telephone: +46-413-65000 Fax: +46-413-14984 E-mail: [email protected] Website: www.procordiafood.com Procordia Food is a leading producer of soup and sauces under the brand name Felix. Products are supplied to the consumer market and the catering/institutional market. Procordia Food belongs to the Norwegian Orkla Group.541

• Santa Maria AB Box 63 431 21 Mölndal Sweden Telephone: +46-31-674200 Fax: +46-31-674112 E-mail: [email protected] Santa Maria is a medium-sized Swedish producer of Tex Mex products, soft tortillas, shells, dinnerpackages, spices, seasoning mixes and sauces.542

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• Unilever Bestfoods AB

Zenitgatan 1 Box 721 251 07 Helsingborg Sweden Telephone: +46-42-177300 Fax: +46-42-177337 Website: www.unilever.se Unilever Bestfoods is part of the Anglo-Dutch food giant Unilever. In Sweden the company sells edible oils, margarine, frying fats, sauces, mayonnaise, tea, soups and cream cheese on the retail and foodservice markets. Brand names for soups, sauces and mayonaise are Milda, Knorr, O’hoj, Slotts, Ambrosia, Garde d’Or, Melba, Crème Bonjour, and Winborg.543 Some of the ice cream products of Unilever Bestfoods probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 5.3.2.



In 2001, there were 1,309 bakeries in Sweden and 78 companies in Sweden producing rusks and biscuits.544 In 2002, total retail sales of pastry in Sweden amounted to SEK 3,416 million (€ 373 million).545


The following information is available on companies producing biscuits in Sweden:

• Gillebagaren AB Näckrosvägen 19 286 72 Örkelljunga Sweden Telephone: +46-435-460320 Fax: +46-435-460881 E-mail: [email protected] Website: www.gille.se Gillebagaren is a subsidiary of the Swiss food distribution company Valoratrade. Gillebaragen is the largest biscuit manufacturer in Sweden. Production runs to 8,500 tons annually. Gillebagaren is the market leader on the Swedish market for oat biscuits, nibbles, small dry cookies and ginger snaps. The brand name is Gille.546 Gille cookies contain palm oil. 547

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• Göteborgs Kex AB 442 82 Kungälv Sweden Telephone: +46-303-209000 Fax: +46-303-209050 Website: www.goteborgskex.se Göteborgs Kex AB is the leading manufacturer of cookies and biscuits in Scandinavia. The company is part of the Norwegian Orkla Group. Göteborgs Kex claims to have a market share of about 50 percent on the Swedish market for cookies and biscuits. Brand names for sweet biscuits are Baddare, Ballerina, Brago, Café Cookies, Cartoonies, ChokoDig, Condis, Cremekex, Guld Marie, Hushållswafers, Jätten, Kardemummakex, Kung Oscar, Nalle Puh, Plentis, Remi, Safari Cookies, Singoalla, Tom and Jerry and Troja.548

• Kelsen AB Per Håkanssons Väg 46 Box 288 241 24 Eslöv Sweden Phone: +46-413-61190 Fax: +46-413-61191 Website: www.kelsenbisca.com Kelsen and its sister company Bisca AB in Askim are subsidiaries of the Danish bakery company KelsenBisca. KelsenBisca claims to be the market leader for biscuits and cookies in the Nordic countries. Brand names are Kjeldsens, Bisca, KarenVolf and Royal Dansk.549

• Pågen AB Lantmannagatan 32 214 48 Malmö Sweden Telephone: +46-40-323600 Fax: +46-40-927304 E-mail: [email protected] Website: www.pagen.se Pågen claims to be the leading bakery company in Sweden, supplying 5,000 supermarkets and grocery stores with fresh bread every day. The company’s product range includes various kinds of cookies, sold under the brand name Pågen.550

• Semper AB

Torsgatan 14 105 46 Stockholm Sweden Telephone: +46-8-6773100 Fax: +46-8-6773101 E-mail: [email protected] Website: www.semperfoods.com

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Semper AB is a subsidiary of the Danish/Swedish dairy and food company Arla Foods amba. Semper produces baby food, health foods, gluten-free products and prepared foods. Gluten-free products are sold under the Semper and Hammermühle brand names. Various bread products and cookies contain palm oil.551


The following information is available on companies producing cakes and pastry in Sweden:

• Cereali Bakeries AB Lindhagensgatan 120 Box 30040 104 25 Stockholm Sweden Telephone: +46-87-379400 Fax: +46-87-379403 Website: www.cerealia-bakeries.com Cerealia Bakeries is a subsidiary of the Swedish cereal-based foods company Ceralia, which is owned by the Swedish agricultural cooperative Lantmännen. Cereali Bakeries supplies fresh bread and pastry on the retail market, as well as frozend bread and bake-off products on the retail and foodservice markets. Brand names are Bageri Skogaholm, Korvbrödsbagarn and Hatting.552 Bageri Skogaholm leads the Swedish cake and pastry market, generating over one quarter of the market’s value.553

• Delicato AB Grenvägen 9, Segeltorp Box 5013 141 05 Huddinge Sweden Telephone: +46-8-6033300 Fax: +46-8-6465751 Website: www.delicato.se Delicato is a Swedish bakery company, producing cake and pastry. The company claims to have a 12% share of the Swedish retail cake and pastry market and a 75% share of the foodservice market.554

• Frödinge Mejeri AB 598 95 Vimmerby Sweden Telephone: +46-492-19800 Fax: +46-492-19898 E-mail: [email protected] Website: www.frodinge.se Frödinge Mejeri AB is a subsidiary of the Danish/Swedish dairy and food company Arla Foods amba. Frödinge is an important producer of frozen cakes and tarts, under the Frödinge brand name.555

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• Gillebagaren AB Näckrosvägen 19 286 72 Örkelljunga Sweden Telephone: +46-435-460320 Fax: +46-435-460881 E-mail: [email protected] Website: www.gille.se Gillebagaren is a subsidiary of the Swiss food distribution company Valoratrade. Gillebaragen is the largest biscuit manufacturer in Sweden, but the company also produces cake and pastry. The brand name is Gille.556 Gillebagaren shares the second place on the Swedish cake and pastry market with Pågen, with a market share of 10-15%.557

• Pågen AB Lantmannagatan 32 214 48 Malmö Sweden Telephone: +46-40-323600 Fax: +46-40-927304 E-mail: [email protected] Website: www.pagen.se Pågen claims to be the leading bakery company in Sweden, supplying 5,000 supermarkets and grocery stores with fresh bread every day. The company’s product range includes various kinds of bread, toasts, pastries and cookies, sold under the brand name Pågen. The company claims that Pågen KanelGifflar (cinnamon rolls) is the best sold pastry in the Nordic region.558 Pågen shares the second place on the Swedish cake and pastry market with Gillebagaren, with a market share of 10-15%.559



In 2001, there were 168 companies in Sweden producing sugar, cacao and confectionery as well as 38 companies producing ice cream. 560 In 2002, total retail sales of confectionery and ice cream in Sweden amounted to SEK 14,744 million.561 In 2001, the Swedish confectionery market had a total value of US$ 982 million (SEK 10,148 nillion). It was segmented as follows:562

• Gum confectionery SEK 858 million • Sugar confectionery SEK 3,575 million • Chocolate confectionery SEK 4,309 million

In 2001, the Swedish icecream market had a total value of US$ 504 million (SEK 5,209 nillion).563

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The following information is available on companies producing chocolate confectionery in Sweden: • Cloetta Fazer AB

Dalvägen 22 Box 528 169 29 Solna Sweden Telephone: +46-8-4707350 Fax: +46-8-4707375 Website: www.cloettafazer.se The Swedish listed company Cloetta Fazer claims to be the market leader on the total Swedish confectionery market with a 24% market share. Brand names in Sweden are Kexchoklad, Polly, Center, Bridgeblandning, Tarragona, Plopp and Sportlunch.564 Cloetta Fazer is the number two on the Swedish chocolate confectionery market.565

• Kraft Foods Sverige AB

Smedbyvägen 8, 194 86 Upplands Väsby Telephone: +46-8-6271000 Fax: +46-8-986100 E-mail: [email protected] Website: www.kraftfoodsnordic.com Kraft Foods Sverige is a subsidiary of the American food company Kraft Foods, which is part of the Altria group. In Sweden Kraft Foods sells coffee, confectionery, snacks, sauces, cheese and other food products. Brand names for chocolate confectionery in Sweden are Aladdin, Brejk, Co-Co, Daim, Dubbelnougat, Fortuna, Fransk Nougat, Japp, M-kulor, Marabou, Mjölkchoklad, Neverstop Noblesse, Non Stop, Paradis, Pigall, Skotte, Toblerone, Twist, Valnöt and Wafer.566 Kraft Foods is the market leader on the Swedish chocolate confectionery market.567 A supplier of palm oil ingredients to Kraft Foods is the Dutch company Loders Croklaan (see paragraph 4.2.2).568

• Nestlé Sverige AB

Box 7173 250 07 Helsingborg Sweden Telephone: +46-42-199100 Fax: +46-42-199199 Website: www.nestle.se Nestlé Sverige is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In Sweden Nestlé sells coffee, babyfood, breakfast cereals, pet food and chocolate confectionery. Brand names for chocolate confectionery are After Eight, KitKat, Chunky, Smarties, Nuts, Baci, Toffee Crisp and Lion.569 Nestlé is a medium-sized player on the Swedish chocolate confectionery market.570 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).571

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The following information is available on companies producing sugar confectionery in Sweden: • Cloetta Fazer AB

Dalvägen 22 Box 528 169 29 Solna Sweden Telephone: +46-8-4707350 Fax: +46-8-4707375 Website: www.cloettafazer.se The Swedish listed company Cloetta Fazer claims to be the market leader on the total Swedish confectionery market with a 24% market share. Brand names in Sweden are Kexchoklad, Polly, Center, Bridgeblandning, Tarragona, Plopp and Sportlunch.572 Cloetta Fazer is the number two on the Swedish sugar confectionery market.573

• MalacoLeaf Sverige AB

Stadiongatan 10 205 42 Malmö Telephone: +46-40-324200 Fax: +46-40-324390 Website: www.malacoleaf.com MalacoLeaf is a subsidiary of the Dutch sugar, food ingredients and confectionery company CSM. MalacoLeaf claims to be the largest producer of sugar confectionery in Scandinavia. Brand names in Sweden are Läkerol, Malaco, Menthol, Ahlgrens Bilar, SorBits, Elefant, PimPim, Zoo, Rollo, FamilieMix, FamilieGuf, Käck, Snöre, Tom & Jerry and Lakrisal.574 MalacoLeaf is the market leader on the Swedish sugar confectionery market.575


The following information is available on companies producing ice cream in Sweden: • GB Glace AB

Warfvingesväg 24 Box 30033 10425 Stockholm Sweden Telephone: +46-8-6199500 Fax: +46-8-6185900 E-mail: [email protected] Website: www.gb.se

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GB Glace is a subsidiary of the Dutch-British food company Unilever, supplying a broad range of ice creams on the Swedish market. Brand names are GB, Carte d’Or, Cornetto, Magnum, BigPack, Viennetta, Barnglass, Solero, Sandwich, Nogger, 88, Daimstrut, Twister, Calippo, Piggelin and Hamtaro.576 GB Glace is the market leader on the Swedish ice cream market with a market share of almost 50%.577 Some of the ice cream products of GB Glace probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 5.3.2.

• SIA Glass AB Box 100 Stenlösvägen 33 310 50 Slöinge Sweden Telephone: +46-346-715100 Fax: +46-346-715102 Website: www.siaglass.se SIA Glass is part of the private Swedish Berte Group. SIA Glass is a medium-sized ice cream producer. Brand names are SIA, Mövenpick and Oatley. Oatly ice cream contains palm oil.578

• Svenska Glasskiosken AB

Björkhemsv. 13 291 54 Kristianstad Sweden Telephone: +46-44-289700 Fax: +46-44-289730 Svenska Glasskiosken is a new joint-venture, established in October 2003 between the Swiss food giant Nestlë and the Finnish food company Ingman Foods. Svenska Glasskiosken will sell the ice cream produced by both partners. Ingman Foods recently acquired the Swedish ice cream company Åhus Glass and the ice cream business of dairy company Carlshamn Mejeri. Brand names which will be sold by the new company Svenska Glasskiosken include Carlshamn, Sorbet, Glassparty, Åhus Glass, Tofuline, Kingis, Nestlé, Disney, Lion, Smarties, After Eight, Extreme, Extreme Gold and Maxibon.579 Carlshamn Mejeri was the number three on the Swedish ice cream market with a market share of almost 15%.580 On the American market Carlshamn Mejeri sells ice cream under the Swedish Glace brand, which contains palm oil.581

• Triumfglass AB Göteborgsvägen 56 Box 2033 433 02 Sävedalen Sweden Telephone: +46-31-3369850 Fax: +46-31-267850 Website: www.triumfglass.se

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Triumfglass is a private Swedish manufacturer of ice cream, which is sold under the brand names Triumf Glass, Frestis, Maximums, Gammaldags Gräddglass, Frisco, Softy, Pelle Pinguin, Mars, Snickers, Twix, Mega, Avenue, Jumbo, Müntzings and others.582 Triumf is the number two on the Swedish ice cream market with a market share of 15%.583



In 2001, 40 companies in Sweden were active in the potato processing industry.584 In 2002, total retail sales of potato products in Sweden amounted to SEK 2,366 million.585 In 2001, the total value of the Swedish snack market reached a value of US$ 135 million (SEK 1,395 million). The snack market can be segmented as follows: 586

• Savoury biscuits SEK 99 million • Snack nuts SEK 268 million • Potato crisps SEK 735 million • Popcorn SEK 161 million • Savoury snacks SEK 299 million


The following information is available on companies producing nuts, crisps, popcorn and savoury snacks in Sweden:

• Estrella AB

Box 2101 424 02 Angered Sweden Telephone: +46-31-3323000 Fax: +46 31-3316240 Website: www.kraftfoodsnordic.com Estrella is a subsidiary of the American food company Kraft Foods. Estrella claims to be the number two on the Swedish market for potato chips and savoury snacks. Brand names are Estrella and Old El Paso (licensed from General Mills).587 Estrella is the market leader on the Swedish markets for popcorn (market share over 30%) savoury snacks (over 50%), savoury nuts (45%) and potato chips (53%).588 Old El Paso taco chips are fried in palm oil. 589

• OLW Sverige AB

Dalvägen 4 Box 527 169 29 Solna Sweden Telephone: +46-8-7040410 Fax: +46-8-7048870 E-mail: [email protected] Website: www.olw.se

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OLW (which is short for Old London Wasa) is fully owned by the Finnish snack manufacturer Chips. OLW is one of the major snack producers, producing cheez doodles, crisps, peanuts, popcorn, pretzels and dip sauces under the brand name OLW. OLW claims to be the biggest supplier of snacks in the Swedish convenience-goods trade. According to OLW, its Cheez Doodles are the biggest single snack product in the Nordic countries.590 OLW is the number two on the Swedish markets for popcorn, savoury snacks, savoury nuts (market share 21%) and potato chips (40%). 591

• Procter & Gamble Nordic AB Hangövägen 20 Box 27303 102 54 Stockholm Sweden Telephone: +46-8-52808100 Fax: +46-8-52808364 E-mail: [email protected] Website: www.procter.se Procter & Gamble Nordic is a subsidiary of the American listed company Procter & Gamble, which is one of the largest producers of personal care and household care products in the world. In Sweden the company is also selling salt snacks under the Pringles brand name. 592

• Seege AB

Skallebackavägen 10 302 41 Halmstad Sweden Telephone: +46-35-191000 Fax: +46-35-191019 E-mail: [email protected] Website: www.seege.se Seege is a subsidiary of the Finnish snack manufacturer Chips. Seege sell nuts, natural snacks and natural sweets on the Swedish market under the Parrot’s brand name. Seege claims to be the Nordic countries’ biggest producer and supplier of natural snacks.593

• Svenska LantChips AB

Hantverksvägen 16 151 65 Södertälje Telephone: +46-8-55420570 Fax: +46-8-55088096 E-mail: [email protected] Website: www.svenskalantchips.se Svenska LantChips is a family-owned Swedish producer of potato crips, which are sold under the brand name Svenska LantChips.594


The following information is available on companies producing savoury biscuits in Sweden:

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• Göteborgs Kex AB 442 82 Kungälv Sweden Telephone: +46-303-209000 Fax: +46-303-209050 Website: www.goteborgskex.se Göteborgs Kex is the leading manufacturer of cookies and biscuits in Scandinavia. The company is part of the Norwegian Orkla Group. Göteborgs Kex has a market share of about 50 percent on the Swedish market for cookies and biscuits. Brand names for savoury biscuits are Cream Cracker, Digestive, FiberRik, Figurbakade, Frukost, Hjärtpepparkaka, Kornmo, Kung Oscar, Salinas, Saltiner, Smörgåskex, Smörgåsrån, Snackers and Variant.595 Göteborgs Kex is the market leader on the Swedish savoury biscuits market, with a market share of more than 50%.596


The following information is available on companies producing meat snacks in Sweden:

• Gunnar Dafgård AB 533 81 Källby Sweden Telephone: +46-510-845 00 Fax: +46-510-846 90 E-mail: [email protected] Website: www.dafgard.se Gunnar Dafgård is Sweden's largest family business in the food sector. The company produces frozen and chilled products meat snacks and ready-made meals to food services and to retail outlets in Sweden and beyond (restaurants in all Ikea shops worldwide). Brand names are Familjen Dafgård, Gorby’s, Billys and Frankie’s. The company claims to be the market leader in several snack segments.597

• Lithells AB 697 80 Sköllersta Sweden Telephone: +46-19-300300 Fax: +46-19-230858 E-mail: [email protected] Website: www.lithells.se Lithells is a subsidiary of the Finnish meat processing company Atria. Lithells sells meat snacks on the Swedish retail and foodservice markets, under the brand names Atria, Sibylla, Lithells, Lars Jönsson and Samfood.598

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• Scan Foods AB Slakthusplan 4 121 86 Johanneshov Sweden Telephone: +46-8-7258400 Fax: +46-8-7258437 E-mail: [email protected] Website: www.scan.se Scan Foods is a subsidiary of the large Swedish meat cooperative Swedish Meats. Scan Foods supplies sausage, meat delicatessen and meat snacks under the brand names Mammas, Deli, Scan, Krav, Piggham, Gourmet, Kryddiga korvar, Hot Dog and Bullens.599

• Spira AB Grosshandlarvägen 1 Box 42075 126 13 Stockholm Telephone: +46-8-6854200 Fax: +46-8-6854210 E-mail: [email protected] Website: www.spira.se Spira is a Swedish food company owned by LRF, the Federation of Swedish Farmers (69%), Nordico Invest (21%) and the agricultural cooperative Svenska Lantmännen, (10%). Spira produces meat snacks, especially from chicken meat. Products are marketed under brand names such as Kronfågel, Danpo, Chicky World, Stinas Kyckling and Ivars. According to Spira, Kronfågel is the market leader for chicken products in Sweden.600


The following information is available on companies producing pre-fried chips in Sweden:

• McCain Foods Nordic AB Ryssviksvägen 2 131 36 Nacka Sweden Telephone: +46-8-55611690 Fax: +46-8-55611699 Website: www.mccain-nordic.com McCain Foods is a subsidiary of the Canadian company McCain, which claims to be the global market leader in frozen potato products. In Sweden the company sells frozen cisps and other potato products, as well as meat snacks. McCain claims to be the market leader on the frozen pre-fried crisps market. Products are sold under the McCain brand name.601 McCain supplies all chips served by the fast food chain McDonald’s, which accounts for 20% of McCain’s global sales.602

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• Procordia Food AB Ellingevägen 14 241 81 Eslöv Sweden Telephone: +46-413-65000 Fax: +46-413-14984 E-mail: [email protected] Website: www.procordiafood.com Procordia Food is a producer of pre-fried chips and other potato products under the brand name Felix. Procordia Food belongs to the Norwegian Orkla Group.603

• Topp Livsmedelsprodukter AB

Box 901 460 65 Brålanda Sweden Telephone: +46-521-277000 E-mail: [email protected] Website: www.toppibralanda.com Topp is a subsidiary of the Finnish snack manufacturer Chips. Topp manufactures and sells deep-frozen vegetable and potato products under the Topp brand in Sweden and for export. The pre-fried frozen potato chips and other potato products of Topp are fried in palm oil.604



Consumption of ready-made meals in Sweden, measured in value, amounts to approximately SEK 620 per capita, the highest figure in Europe. Demand has increased by 20 per cent per year since the mid-1990s. 605


The following information is available on companies producing fresh prepared foods in Sweden:

• Findus Sverige AB

267 81 Bjuv Sweden Telephone: +46-42-886000 E-mail: [email protected] Website: www.findus.se Findus Sverige is a subsidiary of the British company Findus, a leading international supplier of frozen foods operating in the retail and foodservices sectors. On the Swedish market Findus supplies a large number of frozen ready-made meals. The brand name is Findus.606

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• Gunnar Dafgård AB 533 81 Källby Sweden Telephone: +46-510-845 00 Fax: +46-510-846 90 E-mail: [email protected] Website: www.dafgard.se Gunnar Dafgård is Sweden's largest family business in the food sector. The company produces frozen and chilled products meat snacks and ready-made meals to food services and to retail outlets in Sweden and beyond (restaurants in all Ikea shops worldwide). Brand names are Familjen Dafgård, Gorby’s, Billys and Frankie’s.607

• K-Salat A/S Havnevej 32 Havnsø 4591 Føllenslev Denmark E-mail: [email protected] Website: www.k-salat.dk The Danish company K-Salat is a subsidiary of the British food company Uniq. K-Salat is the leading supplier of chilled sallads on the Danish and Swedish markets. K-Salat's assortment also include sauces, dressings and sandwiches. 70% of its sales are under its own brand name “K” and 30% is under private labels.608

• Procordia Food AB Ellingevägen 14 241 81 Eslöv Sweden Telephone: +46-413-65000 Fax: +46-413-14984 E-mail: [email protected] Website: www.procordiafood.com Procordia Food AB is a producer of salads and prepared foods under the brand name Felix. Procordia Food belongs to the Norwegian Orkla Group.609

• Sardus AB Billeplatsen 1 252 23 Helsingborg Sweden Telephone: +46-42-370250 Fax: +46-42-136009 E-mail [email protected] Website: www.sardus.se

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Sardus is a listed Swedish food company, of which LRF (the Federation of Swedish Farmers) is the most important shareholder (31.5%). Sardus supplies sandwich toppings and frozen foods to the foodservice market. Its products include frozen fish, meat and chicken products as well as sandwich toppings and cheese. Brand names are Pastejköket, Arbogapastej, Lindbergs, Norrboda, Lönneberga, Charkdelikatesser, Eliassons, Falbydens Ost, Gea’s, Souperb, Onsala and various private labels. Sardus claims to be a leader in five segments of the processed meats market: liver paste (52 %), sandwich sausage (21%), black pudding (72%), jellied loaf (40%) and smoked coarse sausage (53%). Sardus share of the foodservice markets amounts to 24% for frozen fish and 30% for poultry.610

• Semper AB

Torsgatan 14 105 46 Stockholm Sweden Telephone: +46-8-6773100 Fax: +46-8-6773101 E-mail: [email protected] Website: www.semperfoods.com Semper AB is a subsidiary of the Danish/Swedish dairy and food company Arla Foods amba. Semper produces baby food, health foods, gluten-free products and prepared foods. Prepared foods include ready-made meals, desserts, sauces, snacks, chocolate products and toppings, which are sold to the food service sector under the Semper, Friggs, Frédinge, Amorello and Ögonblink brand names.611


5.8.1 Producers of baby food

The following information is available on companies producing baby food in Sweden: • Nestlé Sverige AB

Box 7173 250 07 Helsingborg Sweden Telephone: +46-42-199100 Fax: +46-42-199199 Website: www.nestle.se Nestlé Sverige is a subsidiary of the Swiss listed company Nestlé, the largest food company in the world. In Sweden Nestlé sells coffee, babyfood, breakfast cereals, pet food and chocolate confectionery. The brand name for babyfood is Nestlé.612 Most varieties of Nestlé baby gruel (välling)and baby porridge (gröt) contain palm oil. 613 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).614

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• Semper AB

Torsgatan 14 105 46 Stockholm Sweden Telephone: +46-8-6773100 Fax: +46-8-6773101 E-mail: [email protected] Website: www.semperfoods.com Semper AB is a subsidiary of the Danish/Swedish dairy and food company Arla Foods amba. Semper produces baby food, health foods, gluten-free products and prepared foods. The brand name for babyfood is Semper. Most varieties of Semper baby gruel (välling)and baby porridge (gröt) contain palm oil.615 Health foods are sold under the Friggs brand name. Ostriskakor, Vegoburgare mix and Grönsaksbuljong contain palm oil. 616



In 2001 the Swedish skin care market had a value of US$ 229 million (SEK 2,367 million). Facial care forms the dominant sector of the market, accounting for over 80% of the market. Hand and body care is the second largest sector with over 10% of the market and depilatories account for the remainder of market share.617 In 2001 the Swedish make-up market had a value of US$ 120 million (SEK 1,240 million). This market was segmented as follows: 618

• Eye make-up SEK 517 million • Lip make-up SEK 258 million • Nail make-up SEK 147 million • Face make-up SEK 320 million

In 2002, the total Swedish cosmetics and personal care products market had a value of € 1,194 million (SEK 10,932 million).619


The following information is available on companies producing cosmetics and personal care products in Sweden: • Beiersdorf AB

Box 10056 434 21 Kungsbacka Sweden Telephone: +46-300-55000 Fax: +46-300-71914 E-mail: [email protected] Website: www.beiersdorf.se

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Beiersdorf AB is a subsidiary of the German cosmetics company Beiersdorf. In the Sweden Beiersdorf sells personal care products under the brand names Nivea, Dubbeldusch, Atrix and Labello.620 Beiersdorf is one of the leading players on the Swedish skincare market.621

• Colgate-Palmolive AB

Svärdvägen 23 Box 560 182 15 Danderyd Sweden Telephone: +46-8-4465900 Fax: +46-8-4465910 Website: www.colgate.se Colgate-Palmolive AB is a subsidiary of the American company Colgate-Palmolive, a leading global supplier of oral and personal care products. In Sweden Colgate-Palmolive sells oral and personal care products under the Colgate and Palmolive brand names.622

• Cosmétique France AB

Drottninggatan 71 C Box 3130 10362 Stockholm Sweden Telephone: +46-8-59896900 E-mail: [email protected] Website: www.loreal.com Cosmétique France AB and France Beauté AB are the Swedish subsidiaries of the French company Group L’Oréal, the largest cosmetics company in the world. Brand names sold in Sweden are Kérastase, L’Oréal, Redken, Matrix, Garnier, Maybelline New York, Studio Line, Elvital, Fructis, Nutrisse, Vichy, Lancôme, Helena Rubinstein, Biotherm, Cacharel, Giorgio Armani, Ralph Lauren and Guy Laroche.623 L’Oreal is the market leader on the Swedish premium market for lip make-up with a market share of around 25%.624 L’Oreal is one of the leading players on the Swedish skincare market.625

• Coty Inc. 1325 Avenue of the Americas, 34th floor New York New York 10019 United States Telephone: +1-212-4794300 Fex: +1-212-4794399 Website: www.coty.com Coty is an American producer of personal care products, which is owned by the German company Joh.A.Benckiser. Brand names are Adidas, Stetson, Aspen, The Healing Garden, Calgon, Céline Dion, Astor, Lancaster, Davidoff, JOOP!, Jennifer Lopez, Jil Sander, Isabella Rossellini, Yue-Sai, Chopard, Esprit, Club Med, Jovan, Chopard, Vivienne Westwood, Rimmel, Cutex and Sensique du Pierre Robert.626 Coty is the market leader on the Swedish mass market for lip make-up with a market share of 15-20%.627

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• Elizabeth Arden Inc.

14100 NW 60th Avenue Miami Lakes Florida 33014 United States Telephone: +1-305-8188000 Fax: +1-305-8188010 Website: www.elizabetharden.com Elizabeth Arden is a major American listed cosmetics company. On the Swedish market, Elizabeth Arden sells cosmetics products under the following brand names: Elizabeth Arden, 5th Avenue, ardenbeauty, Elizabeth Taylor's White Diamonds, Forever Elizabeth, White Shoulders, Geoffrey Beene's Grey Flannel, Halston, PS Fine Cologne for Men, Giorgio Beverly Hills, Ceramides and Eight Hour Cream.628 Elizabeth Arden is one of the leading players on the Swedish skincare market.629

• Estée Lauder Inc. 767 Fifth Avenue New York New York 10153 United States Telephone: +1-212-5724200 Website: www.esteelauder.com The American company Estée Lauder Companies is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. Brand names are Estée Lauder, Aramis, Clinique, Prescriptives, Origins, M·A·C, La Mer, Bobbi Brown, Tommy Hilfiger, jane, Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble, Kate Spade Beauty, Darphin, Michael Kors, and Rodan and Fields.630 Estée Lauder is the number two on the premium market for lip make-up with a market share of just under 25%.631 Estée Lauder is one of the leading players on the Swedish skincare market.632

• Eurocos AB Maskingatan 8 Box 56 23121 Trelleborg Sweden Telephone: +46-410-54600 Fax: +46-410-54609 E-mail: [email protected] Website: www.claudiacosmetics.com Eurocos is a private Swedish cosmetics company. Products are sold under the brand names Claudia and Trind.633 Eurocos is the number two on the mass market for lip make-up with a market share of around 15%.634

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• Henkel Norden AB Gustavslundsvägen 151 P.O.Box 12080 10222 Stockholm Sweden Telephone: +46-8-6343800 Fax: +46-8-6343820 Website: www.henkel-norden.com Henkel Norden is a subsidiary of the German company Henkel, a leading company in hair care and personal care products. Brand names for personal care products on the Swedish market are Taft, Poly, Palette, Gliss, Schauma, Seborin, Bac, Barnängen, Fa, neutromed, la Toja, Mont Saint Michel, Aok, Crème 21, Diadermine, Theramed, Vademecum, Scorpio, La Perla, Sergio Tacchini, Krizia and Fiorucci.635

• Lever Fabergé AB

Box 21091 100 31 Stockholm Sweden Telephone: +46-8-51926800 Website: www.unilever.se Lever Fabergé is part of the Anglo-Dutch food giant Unilever. The company supplies personal and household care products on the Swedish retail market. Brand names for cosmetics and personal care products are Axe, Dove, Finesse, Klöver Vaseline, Lux, Pepsodent, Rexona, Shield, Sunsilk and Vaseline Intensive Care.636 Lever Fabergé is one of the leading players on the Swedish skincare market.637 Some of Lever Fabergé’s products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 5.3.2.

• Parfums Christian Dior Sweden AB Kungsholms Strand 127 11 233 Stockholm Sweden Telephone: +46-8-4425240 Fax: +46-8-4425249 Website: www.lvmh.com Parfums Christian Dior Sweden AB is a subsidiary of the French luxury goods company Groupe LVMH, which sells wines and spirits, watches and jewellery, fashion and leather goods and perfumes and cosmetics. Cosmetics brands are Christian Dior, Guerlain, Givenchy, Kenzo, Laflachère, Bliss, BeneFit, Fresh, Make Up For Ever, Acqua di Parma and Perfumes Loewe.638 LVMH is the number three on the premium market for lip make-up with a market share of more than 10%.639 LVMH is one of the leading players on the Swedish skincare market.640

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• Procter & Gamble Nordic AB Hangövägen 20 Box 27303 102 54 Stockholm Sweden Telephone: +46-8-52808100 Fax: +46-8-52808364 E-mail: [email protected] Website: www.procter.se Procter & Gamble Nordic is a subsidiary of the American listed company Procter & Gamble, which is one of the largest producers of personal care and household care products in the world. Personal care products are sold in Sweden under the brand names Head & Shoulders, Clairol, Max Factor, Olay, Pantène Pro-V and Vicks. 641 Procter & Gamble is the number three on the mass market for lip make-up with a market share of around 15%.642 Procter & Gamble is one of the leading players on the Swedish skincare market.643


The following information is available on companies producing detergents and household care products in Sweden: • Colgate-Palmolive AB

Svärdvägen 23 Box 560 182 15 Danderyd Sweden Telephone: +46-8-4465900 Fax: +46-8-4465910 Website: www.colgate.se Colgate-Palmolive AB is a subsidiary of the American company Colgate-Palmolive, a leading global supplier of oral and personal care products. In Sweden Colgate-Palmolive also sells household care products under the Ajax, Klorin, Javex and Softlan brand names.644

• Henkel Norden AB

Gustavslundsvägen 151 P.O.Box 12080 10222 Stockholm Sweden Telephone: +46-8-6343800 Fax: +46-8-6343820 Website: www.henkel-norden.com Henkel Norden is a subsidiary of the German company Henkel, a leading company in household care products. Brand names for household care products on the Swedish market are Mini Risk and WC Duck.645

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• Lever Fabergé AB

Box 21091 100 31 Stockholm Sweden Telephone: +46-8-51926800 Website: www.unilever.se Lever Fabergé is part of the Anglo-Dutch food giant Unilever. The company supplies personal and household care products on the Swedish retail market. Brand names for detergents and household care products are Comfort, Sun, Via and Jif.646 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 5.3.2.

• Procter & Gamble Nordic AB Hangövägen 20 Box 27303 102 54 Stockholm Sweden Telephone: +46-8-52808100 Fax: +46-8-52808364 E-mail: [email protected] Website: www.procter.se Procter & Gamble Nordic is a subsidiary of the American listed company Procter & Gamble, which is one of the largest producers of personal care and household care products in the world. Household care products are sold in Sweden under the brand names Ariel, Bold, Fébrèze, Swiffer, Wash & Go and Yes. 647

5.10 Animal feed


Animal feed production figures are provided in Table 44.

Table 44 Animal feed production in Sweden (in 1,000 MT)648



Pig feed 510 530 23.0%

Poultry feed 514 520 22.5%

Milk replacers 6 6 0.2%

Others 50 50 2.2%

Total 2,318 2,306 100%


Companies in the Swedish animal feed sector are organised in the Föreningen Foder Och Spannmål. Specific information on companies producing animal feed products in Sweden is not researched.

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Chapter 6 The market for oil palm products in the United Kingdom

6.1 Import of oil palm products

6.1.1 Palm oil import figures

Palm oil imports into the United Kingdom since 1995 increased by 72% to 793,700 tonnes, equalling 24% of total EU palm oil imports (see Table 24).

Table 45 Palm oil imports into the United Kingdom by country (in 1,000 MT) 649


Malaysia 73.4 181.2 224.6 197.9 224.9 345.2 370% 44%

Indonesia 150.2 125.6 134.7 120.7 118.0 181.4 21% 23%

Papua New Guinea 161.1 96.3 113.5 157.9 173.6 167.0 4% 21%

Colombia 0.0 50.4 58.7 63.6 60.1 38.9 >100% 5%

The Netherlands 15.3 28.3 37.1 29.5 21.8 22.7 48% 3%

Brazil 0.0 5.4 4.5 18.6 24.5 5.0 >100% 1%

Other countries 61.7 15.5 8.7 30.5 26.9 33.5 -46% 4%

Total 462.0 502.7 581.8 618.7 649.8 793.7 72% 100%

As Table 45 shows, Indonesian palm oil imports into the UK increased by 21% since 1995 and now have a 23% share of the UK market. Malaysia is the market leader with 44% and Papua New Guinea also has a relatively large share (21%) of the UK market. Re-export of Malaysian or Indonesian palm oil from the Netherlands only plays a minor role (3%) in the United Kingdom, as do imports from other production countries.

6.1.2 PKO import figures

PKO imports into the United Kingdom since 1995 decreased with 5% to 61,300 tonnes in 2002, equivalent to 11% of total PKO imports into the EU (see Table 27).

Table 46 PKO imports into the United Kingdom by country (in 1,000 MT) 650


Indonesia 15.0 19.2 17.1 16.5 34.9 36.2 141% 59%

Papua New Guinea 11.2 11.9 11.4 8.6 7.6 8.5 24% 14%

The Netherlands 23.1 45.4 44.9 33.0 16.0 7.9 -66% 13%

Malaysia 10.9 8.5 6.0 3.6 1.8 4.1 -62% 7%

Other countries 4.1 6.3 6.5 14.5 4.1 4.6 12% 8%

Total 64.3 91.3 85.9 76.2 64.4 61.3 -5% 100%

Although total PKO imports into the UK decreased, Indonesian PKO imports into the UK increased by 141% since 1995. Indonesia’s market share on the UK PKO market is now 59%. PKO imports from Papua New Guinea (14%) and Malaysia (7%) are much smaller. Re-exports of Indonesian and/or Malaysian PKO from the Netherlands has decreased considerably (-66%) but still account for 13% of UK imports.

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6.1.3 PKM import figures

PKM imports into the United Kingdom since 1995 increased by 5% to 392,100 tonnes in 2002, equivalent to 17% of total PKM imports into the EU (see Table 30).

Table 47 PKM imports into the United Kingdom by country (in 1,000 MT) 651


Malaysia 262.5 267.5 294.5 252.3 231.4 262.9 0% 67%

Indonesia 33.8 77.8 78.1 74.7 66.5 85.8 154% 22%

Nigeria 67.9 24.1 28.3 24.5 34.6 25.0 -63% 6%

The Netherlands 1.2 0.0 15.9 0.7 4.3 17.3 >1000% 4%

Other countries 8.2 3.6 14.6 7.6 5.7 1.1 -87% 0%

Total 373.6 373.0 431.4 359.8 342.5 392.1 5% 100%

Malaysia dominates the UK PKM market, but its market share is stagnant (67%). Indonesian PKM imports increased by 154% since 1995, and now account for 22% of the UK market. Nigeria has a much smaller and decreasing market share (6%) and re-exports from the Netherlands are small and incidental.


The following information is available on companies importing and trading (crude) oil palm products in the United Kingdom: • Agriproject Ltd.

36 Paradise Road Richmond Surrey TW9 1SE England Telephone: +44-20-89482990 Fax: +44-20-89482991 E-mail: [email protected] Website: www.agriproj.com Agriproject Ltd. is a subsidiary of the Russian company Agri project. The company is trading worldwide in tropical commodities from East Asia, among which are oil palm products from Malaysia and Indonesia.652

• BBS Oils-Vegetable Ltd. P.O. Box 86 Northolt Middlesex UB5 4WA England E-mail: [email protected] Website: www.oils-vegetable.com BBS Oils-Vegetable Ltd. is an international trader in vegetable oils, including palm oil and palm kernel oil, supplying wholesalers, retail chains, food manufacturers, restaurants and fast food chains.653

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• Euromark Ventures Ltd.

4 Wellington Road London England Telephone: +44-171-5865522 Fax: +44-171-5865588 E-mail : [email protected] Euromark Ventures imports palm oil from Indonesia.654

• Fontannaz Commodities Ltd.

112 Middlesex Street London E1 7HY England Telephone: +44-20-73778877 Fax: +44-20-73771309 E-mail: [email protected] Website: www.fontannnaz.com

Fontannaz Commodities Ltd. is a British commodities trader, concentrating on tropical and soft oils such as palm oil, soybean oil, rapeseed oil and coconut oil. The company owns a futures brokerage house in Malaysia.655

• Gardner Smith (S.E. Asia) Pte. Ltd. The Firs, The Street Betchworth Surrey RH3 7DJ United Kingdom Website: www.gardnersmith.com Gardner Smith is an Australian merchandising, trading and logistics operation specialising in tallow, vegetable oils, liquid feeds and protein meals.656 Gardner Smith buys Indonesian oil palm products to ship them to Europe, among others from the following oil palm plantation companies: 657 • PT Eluan Mahkota Dutapalma Group • PT Inti Buana Perkasatama • PT Ivo Mas Tunggal Sinar Mas Group • PT Permata Hijau Sawit • PT Sari Lembah Subur Astra Agro Group • PT Sawitra Oil Grains Salim Group • PT Taluk Kuantan Perkasa Dutapalma Group • PT Tunggal Perkasa Astra Agro Group

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• Global Choice Ltd. 26 Regent Plaza Apts 8 Greville Road London NW6 5HU United Kingdom Telephone: +44-20-73729881 Fax: +44-20-6044253 Global Choice Ltd. imports palm oil from Indonesia.658

• Guthrie Symington Ltd.

Bluegate Park, 3B Hubert Road Brentwood Essex CM14 4JE England Telephone: +44-1277-237500 Fax: +44-1277-237501 Website: www.gsymconnect.com Guthrie Symington Ltd. is a subsidiary of the Malaysian oil palm plantation company Kumpulan Guthrie Bhd. Guthrie Symington is the worldwide marketing and distribution outlet for Guthrie rubber, latex and palm oil products. A wide range of rubber & latex grades, rubber related industrial products and edible oils are also sourced from outside the Group via an extensive network of producer contacts. Outside the UK, the company also has offices in Milan (Italy), Paris (France) and Durban (South Africa).659 Guthrie Symington imports oil palm products from Kumpulan Guthrie’s plantation companies in Malaysia and Indonesia, but also from other Indonesian plantation companies. For details see paragraph 2.3.1.

• Hampshire Commodities Ltd.

121 Albert Street Fleet Hampshire GU51 3SR England Tel: +44-1252-613058 Fax: +44-1252-616374 E-mail: [email protected] Hampshire Commodities is a trader importing oil palm products into the United Kingdom.660

• Harris Tobias Ltd.

3 Station Road Stansted Mountfitchet Essex CM24 8BE England Telephone: +44-1279-647164 Fax: +44-1279-647038 E-mail: [email protected] Website: www.harristobias.com

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Harris Tobias Ltd. is a small trader in edible oils, including palm oil. 661

• Kerfoot Group Plc.

Mawson House Bedale, North Yorkshire DL8 1AW England Telephone: +44-1677-424881 Fax: +44-1677-424588 E-mail: [email protected] Website: www.kerfootgroup.co.uk

Kerfoot Group Plc. is the only 100% British owned major supplier of bulk refined vegetable oils in the UK. The company does not own a refinery itself, but buys all kinds of edible and technical oils (including palm oil) from refineries and supplies to customers in the food, pharmaceutical and cosmetics industries. 662

• Prestige Securities

561 Southfields London NW4 4LX England Telephone: +44-208-2036476 Fax: +44-208-2025939 E-mail: [email protected] Website: www.prestigeit.com Prestige Securities is a British broker trading internationally in all kinds of commodities, including palm oil. 663

• Rais Enterprises Ltd.

29 Claygare Road Ealing London United Kingdom Telephone: +44-81-8407190 Fax: +44-81-8407192 Rais Enterprises imports palm oil from Indonesia.664

• Rockmor Ltd.

Thorley House, Thorley Street No. Bishops Stortford Hertfordshire CM23 4AL England Telephone: +44-1279-654579 Fax: +44-1279-755283 E-mail: [email protected] Rockmor is a subsidiary of Mauritius Oil Refineries, which trades globally in vegetable oils. Rockmor imports oil palm products into the United Kingdom.665

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Figure 28 provides an overview of edible oil terminals in the London port area. The following information is available on companies transporting and storing (crude) oil palm products in the United Kingdom:

Figure 28. Edible oil terminals in the London port area

• Bank Line Ltd.

Dexter House, 2 Royal Mint Court London England Telephone: +44-20-79561314 Fax: +44-20-78164995 E-mail: [email protected] Website: www.aws.co.uk Bank Line is a division of Andrew Weir Shipping Ltd. It is a shipping line, operating a regular service between the United Kingdom and the islands in the South Pacific. Oil palm products from Papua New Guinea and the Solomon Islands are transported on a regular basis.666

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Figure 29. Typical cargo carried on a Bank Line voyage northbound

• C. Koole Beheer B.V.

Sluispolderweg 48 1505 HK Zaandam The Netherlands Telephone: +31-75-6812812 Fax: +31-75-6812811 E-mail: [email protected] Website: www.koole.com

Koole is a large Dutch tankstorage and transport company, specialising in edible oils. Koole owns two coasters that transport edible oils from Rotterdam to a number of important English food industries. In Rotterdam, Koole owns edible oil tank storage facilities with a storage capacity of 300,000 m3.667

• Pura Foods Ltd. (Brunswick Wharf) Orchard Place London E14 0JH England Telephone: +44-20-74181500 Fax: +44-20-74185082 E-mail: [email protected] Website: www.pura.co.uk

Brunswick Wharf is the edible oil discharging and storage facility of the edible oil refinery Pura Foods (see paragraph 6.2.2). 668

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• TDG European Chemicals Ltd.

Thunderer Jetty, Choats Road Dagenham Essex RM9 6PU England Telephone: +44-20-85937211 Fax: +44-20-85931632 E-mail: o'[email protected] Website: www.tdg.co.uk TDG European Chemicals is an international logistics company. At its bulk liquid storage facility on the river Thames, TDG owns 253 tanks ranging in size from 2 to 11,000 cubic metres with a total capacity of 138,000 cubic metres. The company stores and distributes vegetable and other edible oils, petroleum products, chemicals and lubricants. 669

Figure 30. TDG’s bulk liquid storage site on the Thames

• Thames Refinery Ltd.

Silvertown London E16 2EW England Telephone: +44-20-74764455 Fax: +44-20-74734716 Website: www.tateandlyle.com Thames Refinery is a subsidiary of the British sugar and food company Tate & Lyle. The Thames Refinery has its own loading and storage facilities along the Thames, including a 12,000 tonnes storage facility for edible oils.670

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• Van den Bergh Oils Ltd. London Road Purfleet Essex RM19 1SD England Telephone: +44-1708-863300 Fax: +44-1708-860757 Van den Bergh Oils Ltd. is a large edible oils refinery, which has been recently sold by Unilever to Pura Foods (sse paragraph 6.2.2). The refinery owns its own discharging and storage facilities, which receive in excess of 300,000 tonnes of edible oils each year including sunflower, rape seed, palm, coconut and olive oils. The refinery delivers bulk oils to a wide range of food manufacturing factories in the United Kingdom and abroad, as well as to the adjacent Unilever margarine factory (see paragraph 6.3.2).

• Vopak Vegoil Logistics Ltd.

Oliver Road, West Thurrock Grays Essex RM20 3EY England Telephone: +44-1708-863399 Fax: +44-1708-683721 E-mail: [email protected] Website: vegoil.vopak.com The Dutch company Vopak is the world leader in chemicals and oil logistics and chemical distribution. Its business unit Vopak Vegoil Logistics operates one of the largest terminals and inland fleets dedicated to vegetable oils and fats and oleochemicals. The company owns two vegetable oil storage facilities in the United Kingdom: Vopak Terminal Ipswich (89,000 m3 storage facility for petroleum products, chemicals and vegetable oils) and Vopak Terminal London (350,000 m3 storage facility for petroleum products, gas, chemicals and vegetable oils).671



Between 65% and 80% of the British palm oil and PKO imports is being refined in the United Kingdom, as is shown in Table 48. The other part of palm oil and PKO imports probably consists of refined oils.

Table 48 Refining of CPO and PKO in the UK (in 1,000 MT) 672


Crude palm oil 446.9 430.0

as % of total import 72.2% 66.2%

Crude palm kern oil 50.3 50.7

as % of total import 66.0% 78.7%

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There are probably around ten edible oil refineries in the UK. 673 Most of these companies are organized in the Seed Crushers’ and Oil Processors’ Association (SCOPA). These companies mostly import the crude oil palm products they are processing themselves. Because they know where these products are coming from they therefore play a crucial role in the supply chain. Most British refineries further process refined oils into ingredients for the food, detergent, cosmetic and other industries. The following information is available on companies refining crude palm oil and palm kernel oil in the United Kingdom: • Aarhus United UK Ltd.

King George Dock Hull HU9 5PX England Telephone: +44-1482-701271 Fax: +44-1482-709447 Website: www.aarhusunited.com/uk Aarhus United UK Ltd. Was, until recently, known as Anglia Oils. It is a subsidiary of the Danish listed food company Aarhus United. Aarhus United UK imports and sells about 40 oils with a total volume of 375,000 tonnes per year. Most oils are refined at its Hull refinery, one of the largest in Europe. 674 Aarhus United UK supplies oil products to the food industry, the cosmetics industry, food services, and bakeries. Products supplied are cocoa butter alternatives, fats for fillings, fats for coatings, fats for bakery products, vegetable oils for margarine, fats for dairy products and deep-frying oils. Many of these products are based on palm oil or palm kernel oil. Brand names are Prep, Whirl, Harry Ramsden's and Again & Again.675 A client is Rank Hovis (see paragraph 6.4.3). 676 A major palm oil supplier of Aarhus United is United Plantations Bhd. in Malaysia, which is 23.4% owned by the company. 677 Anglia Oils bought CPO from the Indonesian oil palm plantation group PT PP London Sumatra Indonesia, at least until 1997. 678

• Britannia Food Ingredients Ltd.

Britannia Way Goole East Yorkshire DN14 6ES England Telephone: +44-1405-767776 Fax: +44-1405-765111 E-mail: [email protected] Website: www.britanniafood.com Britannia Food Ingredients Ltd. has operated its own refinery since 1996. The company processes and supplies speciality fat blends to the chocolate, confectionery and biscuit industries. Apart from limited amounts of speciality fat ingredients, i.e. sal, illipé, shea, kokum, mango and their fractions, only palm oil or palm fractions are processed. Britannia Food also supplies high quality frying oils to the snack food industry, made exclusively out of palm oil.679

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The most important palm oil supplier of Britannia Food is the Malayasian Golden Hope oil palm plantation group, that owns oil palm plantations in Malaysia and Indonesia (see paragraph 2.3.1). In partnership with “a major European premium snack food manufacturer”, Britannia Food Ingredients and Golden Hope Plantations are co-operating to address quality issues with the aim of delivering the highest-quality palm olein for frying.680 Britannia Food Ingredients also buys speciality fats from the Indonesian company PT Cahaya Kalbar Tbk.681

• Cargill Plc.

Witham St. Hughs Lincoln LN6 0RR England Tel: +44-1522-556473 Fax: +44-1522-860473 E-mail: [email protected] Website: www.cargill.com Cargill Plc. is a subsidiary of Cargill, Inc. (United States). The company imports crude edible oils (including palm oil) and refines them at its edible oil refineries in Bootle and Hull, which have a total refining capacity of 700 MT/day. Refined products are supplied to the food industry and other industries. Cargill also trades PKM for the animal feed industry.682 On the EU market for crude vegetable oils, Cargill is the market leader with a market share of 30 to 40%.683 Cargill Plc. is probably supplied with palm oil from Indonesia and PNG by Cargill Indonesia (see paragraph 2.3.1).

• Karlshamns UK Ltd.

220 Wincolmlee Hull HU2 OPX England Telephone: +44-1482-586747 Fax: +44-1482-587004 E-mail: [email protected]

Karlshamns UK Ltd. is a subsidiary of Karlshamns (Sweden). The company imports oil palm products into the United Kingdom and refines them. It has an oil refining capacity of 100 MT/day.684 The company states that all its palm oil imports are supplied by oil palm plantations in West Malaysia.685 Karlshamns incidentally also buys Indonesian oil palm products from Indonesian suppliers, including the PT Bukit Kapur Reksa refinery (Wilmar Group). 686

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• Pura Foods Ltd.

Orchard Place Poplar London E14 0JH England Telephone: +44-20-74181500 Fax: +44-20-74185082 E-mail: [email protected] Website: www.pura.co.uk Pura Foods Ltd. was acquired by the large American commodity trading company Archer Daniels Midland (ADM) in February 2003. Pura Foods supplies approximately one-third of the edible oil requirements of the UK food manufacturing, catering and technical industries. Its customers use edible oils to produce ready meals, biscuits & bakery, crisps & snacks, frozen foods, confectionery, mayonnaise, soups, ice cream and margarines & spreads. Palm oil and palm kernel oil are among the most important oils refined by Pura Foods.687 Recently Pura Foods further strengthened its position as an edible oil supplier to the food industries, by acquiring the oil refinery Van den Bergh Oils from Unilever Bestfoods UK. Van den Bergh Oils is located in Purfleet, Essex and supplies refined oils and fats (including palm oil) to both Unilever Bestfoods’ group companies (see paragraph 6.3.2) and to other UK food manufacturers. The business employs approximately 140 people.688 In 1995 Central Edible Oils, a subsidiary of Pura Foods, was mentioned as a major supplier of vegetable shortening by the British subsidiary of the American fast-food chain McDonald’s.689 Another client is Rank Hovis (see paragraph 6.4.3). 690 ADM is closely linked to Wilmar Holdings in Singapore, which is probably supplying Indonesian palm oil to Pura Foods (see paragraph 2.3.1).



The UK margarine, spreads and butter market had a retail turnover value of £ 785 million in 2001. The taste sector (comprising butter, spreadable butter and dairy spreads) accounts for 63% of the market, the health sector (comprising low fat spreads, sunflower spreads, olive oil based spreads and nutriceuticals) accounts for 33% and the remaining 4% of the market is accounted for by cooking fats.691

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Table 49 Production of margarine and fats in the UK (in 1,000 MT) 692


Margarine 137.3 124.3

Other table spreads 251.1 284.9

Solid cooking fats 135.4 120.7

Total 523.8 529.9

Palm oil content (in 1,000 MT) Margarine and other table spreads 68.0 69.7 17.0%

Solid cooking fats 52.2 44.1 36.5%

Total 120.2 113.8 21.5%

As shown in Table 49, the average palm oil content of margarine and spreads produced in the UK is 17.0%. As margarine and spreads contain a lot of water, palm oil actually accounts for 24.0% of all edible oils used for the production of margarine and spreads in the UK. For solid cooking fats the palm oil share is 36.5%. In both product groups only rapeseed oil has a larger share.


There are 12 plants in the United Kingdom that produce margarine, other table spreads and solid cooking fats.693 The UK Margarine and Spreads Association only has three members: Dairy Crest, Matthews Foods and Unilever Bestfoods UK.694 But there are some other companies producing margarine and spreads as well. The following information is available on companies producing margarine, other table spreads and solid cooking fats in the United Kingdom:

• Arla Foods UK Plc.

Craven House 87 Kirkstall Road Leeds LS3 1JE Telephone: + 44 113 244 0141 Fax: + 44 113 242 5546 Website: www.arlafoods.co.uk Arla Foods UK plc is the British subsidiary (51% owned) of Arla Foods amba (Denmark/Sweden), the largest dairy co-operative in Europe. Arla Foods amba was created in April 2000 by the merger of Arla of Sweden and MD Foods of Denmark. The British subsidiary of MD Foods was renamed Arla Foods plc, and then Arla Foods UK plc in March 2003 after the merger with Express Dairies plc. Arla Foods UK plc is now the largest supplier of milk in the UK. The company processes 2.3 billion litres annually, just behind Dairy Crest which produces more cheese.695 One of Arla’s most important products is Lurpak butter, which is the market leader on the British butter market. 696 Lurpak is also produced in a light, spreadable variety. This spreadable butter contains some vegetable oil, possibly palm oil.697 On the UK margarine and spreads market Arla Foods UK has a 1.4% market share.698

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• Cardowan Creameries Ltd. 49 Holywell Street Glasgow G31 4BT Scotland Telephone: +44-141-5541137 Fax: +44-141-5510619 E-mail: [email protected] Website: www.cardowan.co.uk Cardowan Creameries manufacturers of an extensive range of bulk margarines and shortenings and is one of the few major producers in Britain still operating as an independent family business. Ingredients used are refined rapeseed, palm, soya and fish oil.699

• Dairy Crest Group Plc. Claygate House Littleworth Road Esher Surrey KT10 9PN England Telephone: +44-1372-472200 Website: www.dairycrest.co.uk Dairy Crest Group Plc. is a large British dairy company, producing cheese, milk, butter, margarine and spreads. Most products are based on milk, but in the spreads vegetable oils are used as well. Spread brands are Clover, Willow, Country Life, Utterly Butterly, St Ivel Gold, Vitalite, Golden Churn, Special Soft and Carapelli.700 Dairy Crest is now the largest producer of margarine and spreads in the United Kingdom with a 43.5% market share.701

• Matthews Foods Plc.

The Healey Complex Healey Road Ossett West Yorkshire WF5 8NE England Telephone: +44-1924-272534 Fax: +44-1924-277071 E-mail: [email protected] Website: www.matthews-foods.co.uk Matthews Foods is the UK's leading independent supplier of fats and spreads, producing both branded (Pure and Calvia) and own label products for the retail, food service, and prepared food trades. Matthews Foods supplies most of the UK's major multiple retailers, is the primary supplier of fats to the food service trade, and works in partnership with a wide range of food manufacturers.702 Matthews Foods Plc. uses oil palm ingredients.703 All Pure spreads (Pure Sunflower, Pure Soya and Pure Organic) contain palm oil.704

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• Pura Foods Ltd.

Orchard Place London E14 0JH England Telephone: +44-20-74181500 Fax: +44-20-74185082 E-mail: [email protected] Website: www.pura.co.uk Pura Foods Ltd. was acquired by the large American commodity trading company Archer Daniels Midland (ADM) in February 2003. Pura Foods produces its own retail margarine and spreads, cooking oils and cooking fats under the Pura, Wesson, Frymax, Trex, Golden Thouch and Light Thouch brand names, as well as under private labels. 705 On the UK margarine and spreads market Pura Foods is the number three with a 9.7% market share.706 ADM is closely linked to Wilmar Holdings in Singapore, which is probably supplying Indonesian palm oil to Pura Foods (see paragraphs 2.3.1 and 2.3.3).

• Raisio Group Plc.

P.O. Box 101 FIN-21201 Raisio Finland Telephone: +358-2-4432111 Fax: +358-2-4432315 E-mail: [email protected] Website: www.raisiogroup.com Raisio Group is a large Finnish food and chemicals company. Its export margarine brand name is Benecol, which probably does not contain palm oil.707 On the UK margarine and spreads market Raisio has a 3.8% market share.708

• Rowallan Creamery Ltd. Glasgow Road Kilmarnock Ayrshire KA3 6AA Scotland Telephone: +44-1563-526442 Website: www.aarhusunited.com/uk Rowallan Creamery is a subsidiary of Aarhus United (Denmark). The company produces industrial margarine and bakery fats.709

• Unilever Bestfoods UK Ltd. Brooke House, Manor Royal Crawley West Sussex RH10 9RQ England Telephone: +44-1293-648000 Fax: +44-1293-648900 Website: www.ubfoods.co.uk

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Unilever Bestfoods UK Ltd. is the largest British subsidiary of the Anglo-Dutch multinational Unilever. It was formed in January 2001 by the merger of Van den Bergh Foods and Bestfoods UK. Unilever Bestfoods operates the largest margarine factory in the world, producing margarine and spreads under the brand names Flora, Stork, I Can't Believe its not Butter!, Emlea, Olivio and Mazola. In the UK over one million tubs of Flora are produced each day. 710 On the British margarine market Unilever Bestfoods is the number two, with a 31.9% market share.711 Unilever Bestfoods is one of the most important users of palm oil in the United Kingdom. Refined palm oil is supplied to the margarine factory by the adjacent Van den bergh Oil refinery, which was recently sold to Pura Foods (see paragraph 6.2.2). On a global scale Unilever buys over one million tonnes of palm oil, or 6-8% of the total world production, every year, mostly from Malaysia and Indonesia.712 Indonesian suppliers of oil palm to Unilever include:




6.3.3 Producers of food ingredients

The following information is available on companies producing food ingredients in the United Kingdom: • Aarhus United UK Ltd.


• Abitec Group Ltd.

Salthouse Road Brackmills Industrial Estate Northampton NN4 7EX England Telephone: +44-1604-768999 E-mail: [email protected] Abitec Group is a subsidiary of the British food company Associated British Food Plc. Abitec is an international industrial marketing business serving the food, flavours, personal care, textile, pharmaceutical and paper industries with speciality ingredients and technical solutions. The company supplies a broad range of bakery ingredients, including many ingredients based upon edible oils.719

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• Arkady Craigmillar Ltd.

Stadium Road Bromborough, Wirral Merseyside CH62 3NU England Telephone: +44-151-3431600 Fax: +44-151-3461334 Website: www.arkadycraigmillar.co.uk Arkady Craigmillar is a subsidiary of the Dutch sugar, confectionery and food ingredients company CSM. Arkady Craigmillar supplies oils, fats, margarines and other ingredients to the bakery sector. Some of these products contain palm oil and palm kernel oil. Arkady Craigmillar is the market leader on the UK market for bakery ingredients.720

• BFP Wholesale Ltd.

Unit 8, Connections Industrial Centre Vestry Road, Sevenoaks Kent TN14 5DF England Telephone: +44-1732-228300 Fax: +44-1732-228309 E-mail: [email protected] Website: www.bfpwholesale.com BFP Wholesale Ltd. is a subsidiary of the chemical company DSM (The Netherlands). BFP Wholesale supplies and distributes 2,500 different baking ingredients to the specialist food manufacturers, bakeries and retailers. Among these products are various frying fats, oils, shortenings etc. made from palm oil or palm kernel oil.721

• Britannia Food Ingredients Ltd.


• Croda Food Services Ltd. Falcon Street Oldham Lancashire OL8 1JU England Telephone: +44-161-6526311 Fax: +44-161-6272346 Website: www.croda-foods.co.uk Croda Food Services Ltd. is part of the British chemical group Croda International Plc., one of the world's leading producers of speciality chemicals for a variety of markets. Croda Food Services Ltd. manufactures a specialised range of release agents, edible lubricants, technical oil blends, fractionated oils, emulsifiers, spray dried fat powders, flaked and cryogenically powdered fats for the food industry. Some of these products are based upon palm oil or palm kernel oil.722

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6.3.4 Producers of soup and sauces

The following information is available on companies producing soup and sauces in the United Kingdom:

• Golden West Foods Ltd.

Hareshill Road Heywood Lancashire OL10 2TN England Telephone: +44-1706-620580 Fax: +44-1706-620572 Website: www.goldenwest.co.uk Golden West Foods Ltd. is a subsidiary of the large British food company RHM. Golden West Foods supplies all McDonald's restaurants in the UK and northwestern Europe with hamburger buns. On behalf of McDonald’s, Golden West also produces over 500,000 litres of Coca-Cola and milkshake syrups, 250,000 litres of bulk tomato ketchup and 1,000,000 sachets of tomato ketchup each week. Othe products supplied to McDonald’s: tomato based sauces, McFlurry ice cream toppings, pizza sauce, white sauces, salad dressings and mustard and brown sauce.723

• H.J. Heinz UK Ltd. Hayes Park South Building Hayes End Road Hayes Middlesex UB4 8AL England Telephone: +44-20-85737757 Fax: +44-20-88482325 Website: www.heinz.co.uk H.J. Heinz is a subsidiary of the listed American food company H.J. Heinz Company, one of the largest food companies in the world. In the United Kingdom H.J. Heinz is a very prominent player on the soup and sauces markets, under the brand name Heinz.724 Heinz rusks and breadsticks contain palm oil, obtained from Malaysia through a UK supplier.725

• Hazlewood Sauces & Pickles Ltd. Barlby Road Selby North Yorkshire YO8 5BJ England Telephone: +44-1757-269000 Fax: +44-1757-701916 Website: www.greencore.ie Hazlewood Sauces & Pickles is a subsidiary of the Irish food and ingredients company Greencore Group. Hazlewood is one of the leading UK manufacturers, producing a wide range of private label sauces as well as some Heinz sauces (under license). Customers include all major UK retail chains.726

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• HP Foods Ltd.

Reading RG8 9ZZ England Telephone: +44-149-1879019 E-mail: [email protected] Website: www.hpfoods.com HP Foods is a subsidiary of the French listed food company Danone, which concentrates on fresh dairy products, beverages and cereal biscuits and snack crackers. Danone claims to be the second-largest producer cereal biscuits and snack crackers in the world. In the United Kingdom HP Foods is a market leader on the sauces market, with its Lea & Perrins, HP, Daddies, Rajah and Amoy brands. 727

• Kraft Foods UK Ltd. St George's House Bayshill Road Cheltenham GL50 3AE England Telephone: +44-1242-236101 E-mail: [email protected] Website: www.kraftfoods.co.uk Kraft Foods UK is a subsidiary of the American food company Kraft, which is the second largest food company in the world. Kraft is ultimately owned by the American food and tobacco holding company Altria. In the Uk, Kraft Foods is the markt leader on the dressings market with Kraft Get Dressed!, which has a 34% market share.728 A supplier of palm oil ingredients to Kraft Foods is the Dutch company Loders Croklaan (see paragraph 4.2.2).729

• Masterfoods Ltd. Hansa Road King's Lynn Norfolk PE30 4JE England Telephone: +44-1553-692222 Website: www.mars.com Masterfoods is a subsidiary of the American family-owned food company Mars Inc. Masterfoods is a major player on the UK sauces market with the Dolmio and Uncle Ben’s brands.730

• Unilever Bestfoods UK Ltd. Brooke House, Manor Royal Crawley West Sussex RH10 9RQ England Telephone: +44-1293-648000 Fax: +44-1293-648900 Website: www.ubfoods.co.uk

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Unilever Bestfoods UK Ltd. is the largest British subsidiary of the Anglo-Dutch multinational Unilever. It was formed in January 2001 by the merger of Van den Bergh Foods and Bestfoods UK. Unilever Bestfoods is a major producer of sauces and mayonnaise under the brand names Knorr, Colman’s, Hellmann’s. 731 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 6.3.2.

• Verstegen Spices & Sauces UK Ltd. Parkeston House, Parkeston Quay Harwich Essex CO12 4PJ England Telephone: +44-1255-554100 Fax: +44-1255-554110 E-mail: [email protected] Website: www.verstegen.nl Verstegen Spices & Sauces UK is a subsidiary of the Dutch company Verstegen. On the British market Verstegen supplies herbs, spices and sauces to the retail, foodservice and industry markets, under the brand name Verstegen.732

6.3.5 Edible oils and fats packers and traders

Edible oils and fats packers and traders buy edible oils, fats, margarines and sauces from edible oil refineries and margarine and sauces producers, to repack and sell them further. Often they buy products in bulk and pack them in retail packages (bottles). The following information is available on edible oils and fats packers and traders in the United Kingdom: • CYB Group Plc.

4-5 Lodge Road Staplehurst Kent TN12 0QY England Telephone: +44-1580-893344 Fax: +44-1580-893053 E-mail: [email protected] Website: www.cybgroup.co.uk CYB Group Plc. is a British trading company serving caterers and food manufacturers with quality edible oils (including palm oil and palm kern oil) and a wide range of catering supplies and food packaging materials.733

• Pura Foods Ltd.

Church Manorway Erith Kent DA8 1DL Engalnd Telephone: +44-1322-443000 E-mail: [email protected] Website: www.pura.co.uk

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Pura Foods Ltd. was acquired by the large American commodity trading company Archer Daniels Midland (ADM) in February 2003. 734 Pura Foods is one of the largest oil packers in Europe, with a 5% market share on the EU market and a 20% market share in the UK. 735 ADM is closely linked to Wilmar Holdings in Singapore, which is probably supplying Indonesian palm oil to Pura Foods (see paragraphs 2.3.1 and 2.3.3).



The biscuits and wafer market in the United Kingdom reached a volume of 504,600 tonnes in 2002, with a consumer value of £ 1,554 million.736 The UK cakes and pastries market is one of the largest in Europe, reaching a value of £ 916 million in 2002. 737 Two thirds of the market is accounted for by either private labels or small producers which individually have a very small market share.738 In the United Kingdom, palm oil accounts for 50% of all shortenings.739


The following information is available on companies producing biscuits in the United Kingdom: • Burton's Foods Ltd.

Pasture Road, Moreton Wirral Merseyside CH46 8SE England Telephone: +44-151-4884536 Fax: +44-151-4884533 E-mail: [email protected] Website: www.burtonsfoods.com Burton's Foods is a subsidiary of the investment group Hicks, Muse, Tate & Furst. Burton’s Foods is the second largest biscuit manufacturer in the UK, and also produces snacks and confectionery. Brand names are Homeblest Digestives, Cadbury, Wagon Wheels, Viscount, Lyons, Jammie Dodgers, Burton's, Maryland Cookies, Royal Edinburgh, Toffypops and Bingo.740 Burton’s Foods is the fifth largest bakery company in the United Kingdom.741

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• Elkes Biscuits Ltd. Dove Valley Bakeries, Cheadle Road Uttoxeter Staffordshire ST14 7BT England Telephone: +44-1889-563131 Fax: +44-1889-565379 Website: www.northern-foods.co.uk Elkes is a subsidiary of the Britisch food company Northern Foods. Elkes Biscuits produces a wide range of competitively priced sweet and semi sweet biscuits mainly under retailers' own labels. It’s clients probably include Marks & Spencer, Tesco, Asda, Sainsbury’s and Safeway.742

• Fox's Biscuits Ltd. P.O. Box 10 Batley West Yorkshire WF17 5JG England Telephone: +44-1924-444333 E-mail: [email protected] Website: www.foxs-biscuits.co.uk Fox’s is a subsidiary of the Britisch food company Northern Foods. Fox’s claims to be the UK’s largest manufacturer of premium quality biscuits, with brands including Rocky, Classic and Echo.743 On the UK sweet biscuits market, Fox’s is the third largest with a 12% market share.744

• Jacobs Bakery Ltd.

Canal Street South Wigston Leicester LE18 4PQ England Telephone: +44-1162-785133 Fax: +44-1162-781489 E-mail: [email protected] Jacobs Bakery is a subsidiary of the French listed food company Danone, which concentrates on fresh dairy products, beverages and cereal biscuits and snack crackers. Danone claims to be the second-largest producer of cereal biscuits and snack crackers in the world. In the United Kingdom biscuits are sold under the Jacob’s, Danone and LU brand names.745 On the UK sweet biscuits market, Jacobs is the second largest with a 13% market share.746 Jacob’s Fig Rolls and Jacob’s Cream Crackers contain palm oil. 747

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• United Biscuits Ltd. Hayes Park North Hayes End Road Hayes Middlesex UB4 8EE England Telephone: +44-208-2345000 Website: www.unitedbiscuits.com United Biscuits is a subsidiary of the investment consortium Finalrealm and the American listed food company Kraft Foods. United Biscuits is the most important producer of biscuits in the United Kingdom, under the brand names BN, McVities, Go-Ahead, Delacre, Jaffa Cakes and Penguin.748 On the UK sweet biscuits market, United Biscuits is the market leader with a 25% market share.749


The following information is available on companies producing cakes and pastry in the United Kingdom:

• Allied Bakeries Ltd.

Fairfield Avenue Staines TW18 4BA England Telephone: +44-1784-451366 Email: [email protected] Website: www.alliedbakeries.co.uk Allied Bakeries is a family-owned British bakery group, which claims to have approximately a third share of the bread market. The company also provides a wide range of morning goods, rolls and part-baked bread for bake-off in retailers’ stores. Brand names are Kingsmill, Allinson, Sunblest and Burgen.750

• British Bakeries Ltd. King Edward House 27 - 30 King Edward Court P.O. Box 527 Windsor Berkshire SL4 1TJ Telephone: +44-1753-857123 Fax: +44-1753-791739 Email: [email protected] Website: www.britishbakeries.co.uk British Bakeries Ltd. is a subsidiary of the British RHM Group (see below). The company supplies about one third of the UK's daily bread, under the Hovis, Mothers Pride and Nimble brand names. British Bakeries bakes 16 million loaves and 6 million packs of morning goods (crumpets, fruit buns, hot cross buns, croissants, rolls, scones, muffins and scotch pancakes) every week. Its customers include Tesco, J. Sainsbury, Asda, Somerfield, Safeway and Co-op.751

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• Hazlewood Cakes & Desserts Ltd. Amsterdam Road Sutton Fields Industrial Estate East Hull HU7 0XS England Telephone: +44-1482-828280 Fax: +44-1482-828230 Website: www.greencore.ie Hazlewood Cakes & Desserts is a subsidiary of the Irish food and ingredients company Greencore Group. Hazlewood is the leading UK manufacturer of private label cakes and desserts. Customers include all major UK retail chains.752

• Northern Foods Plc.

Beverley House St. Stephen’s Square Hull HU1 3XG England Telephone: +44-1482-325432 Fax: +44-1482-226136 Northern Foods is a listed British food company, specialising in producing private label products for the UK’s largest retailers. The private labels of the supermarket chains Marks & Spencer, Tesco, Asda, Sainsbury’s and Safeway account for 70% of Northern Foods’ sales. Northern Foods claims to be the UK’s leading supplier of own label cakes to the major retailers, as well as a leading manufacturer of fresh and frozen speciality bread, cake and pastry products for the retail and foodservice sector. 753 Northern Foods is the second-largest bakery company in the United Kingdom, behind Rank Hovis.754

• RHM Ltd.

Chapel House, Liston Road Marlow Buckinghamshire SL7 1TJ Telephone: +44-1628-478484 Website: www.rhm.com RHM (formerly Rank Hovis McDougall) is one of the largest food companies in the UK. RHM is the largest flour miller in the UK and its bread bakeries division (which includes British Bakeries) manufactures, markets and distributes wrapped bread and other bakery snacks (rolls, muffins, scones, pancakes, etc), as well as frozen, part-baked bread and patisserie products for 'baking off' in retailers' in-store bakeries and in convenience stores. Brand names are Hovis, Granary, Nimble, Ormo and Mothers Pride.755 Through various subsidiaries RHM is also the largest producer of cakes and pastry in the UK, under the brand names Mr Kipling, Cadbury's and Lyons. RHM accounts for over a quarter of the UK market.756

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• Vandemoortele UK Ltd.

Ashley House 86-94 High Street Hounslow Middlesex TW3 1NH England Telephone +44-20-88147830 Fax: +44-1-815777441 Website: www.vandemoortelebakeryproducts.com Vandemoortele UK is a subsidiary of the Belgian company Vandemoortele. In the United Kingdom Vandemoortele is a leading supplier of bake-off bread, pastry and other bakery products to bakers and caterers. Brand names for bakery products are Doony’s, Banquet d’Or, Gold Cup Express and Croustifrance.757

• Warburtons Ltd.

Hereford House Hereford Street Bolton BL1 8JB England Telephone: +44-1204-556676 Fax: +44-1204-384527 E-mail: [email protected] Website: www.warburtons.co.uk Warburtons is a family-owned bakery group with 3,200 employees in eleven different bakeries and nine depots, producing bread, rolls, cakes and bread snacks.758 Warburtons is the sixth largest bakery company in the United Kingdom.759



The chocolate confectionery market in the United Kingdom reached a volume of 525,800 tonnes in 2002, with a consumer value of £ 3,690 million.760 The market is very consolidated, with the three international confectioners Cadbury Schweppes, Nestlé and Mars controlling 85% of the market.761 The British market for ice cream is one of the largest in Europe, reaching a value of US$ 2 billion (£ 1,389 million) in 2001. Dairy ice cream has the largest share by far. The four international ice cream producers Haägen-Dasz, Unilever, Nestlé, and Mars controll almost 60% of the market.762


The following information is available on companies producing chocolate confectionery in the United Kingdom:

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• Cadbury Schweppes Plc.

25 Berkeley Square London W1J 6HB England Telephone: +44-207-8305095 Fax: +44-207-8305157 Website: www.cadburyschweppes.com Cadbury Schweppes is a listed British company, one of the largest confectionery and soft drinks companies in the world. On the British market chocolate confectionery is sold under the brand names Cadbury, Trebor, Bassett's, Fry's, Maynards, Sharps, Barratt and Butterkist.763 Cadbury Schweppes is the market leader on the British chocolate confectionery market.764 Some Cadbury-Schweppes products (such as Cadbury’s Fruit & Nut) contain palm oil. 765 Cadbury-Schweppes was a customer of the Indonesian oil palm plantation group PT PP London Sumatra Indonesia in 2002, possibly buying CPO. 766 A supplier of palm oil ingredients to Cadbury Schweppes is the Dutch company Loders Croklaan (see paragraph 4.2.2).767 A recent study by ISIS Asset Management and ProForest states that Cadbury-Schweppes “has been able to source [palm oil] from suppliers that are known to produce in line with sustainable development objectives”. 768 It should be noted thar Cadbury-Schweppes has licensed the Cadbury brand to a number of other food companies, such as Burton’s Foods for chocolate biscuits (see paragraph 6.4.2), RHM for chocolate cakes (see paragraph 6.4.3) and Uniq for chocolate desserts (see paragraph 6.7.2).

• Ferrero (UK) Ltd.

Awberry Court, Hatters Lane Watford Hertfordshire WD18 8YJ England Telephone: +44-1923-690300 Fax: +44-1923-690400 Website: www.ferrero.co.uk Ferrero (UK) is a subsidiary of the independent Italian confectionery company Ferrero. Brand names on the UK chocolate confectionery market are Kinder, Nutella, Ferrero Rocher, Confetteria Raffaello and Mon Chéri.769

• Kraft Foods UK Ltd.

St George's House Bayshill Road Cheltenham GL50 3AE England Telephone: +44-1242-236101 E-mail: [email protected] Website: www.kraftfoods.co.uk Kraft Foods UK is a subsidiary of the American food company Kraft, which is the second largest food company in the world. Kraft is ultimately owned by the American food and tobacco holding company Altria. In the UK, Kraft Foods markets chocolate products under the brand names Terry’s, Dime, Toblerone, Suchard and Côte d’Or.770

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Kraft Foods is the number four on the British chocolate confectionery market. 771 A supplier of palm oil ingredients to Kraft Foods is the Dutch company Loders Croklaan (see paragraph 4.2.2).772

• Masterfoods Ltd. 3d Dundee Road Slough Berkshire SL1 4JY England Telephone: +44-1753-693000 Website: www.mars.com Masterfoods is a subsidiary of the American family-owned food company Mars Inc. The plant in Slough manufactures some 200,000 tons of confectionery per year, and 3 million bars a day. Chocolate confectionery brands sold in the UK include Bounty, Celebrations, Galaxy, M&M's, Mars, Snickers, Twix, Topic, Milky Way, Tracker, Revels, Starburst, Skittles, Tunes and Lockets.773 Masterfoods is the number two on the British chocolate confectionery market. 774

• Nestlé UK Ltd.

St. George’s House Croydon Surrey CR9 1NR England Telephone: +44-20-86863333 Website: www.nestle.co.uk Nestlé UK is a subsidiary of the Swiss company Nestlé, the largest food company in the world. In the United Kingdom Nestlé markets confectionery, mineral water, coffee, ice cream, breakfast cereals, dairy deserts, creams, meat snacks, nutrition food and pasta. Brand names for chocolate confectionery are Kit Kat, Rowntrees, Caramac, Yorkie, Golden Cup, Rolo, Aero, Walnut Whip, Drifter, Smarties, Milkybar, Toffee Crisp, Willy Wonka's Xploder, Crunch, Maverick, Munchies, Lion Bar, Quality Street, After Eight, All Stars, Matchmakers, Dairy Box, Easter Eggs, Black Magic, Christmas Packs, Breakaway and Blue Riband.775 Nestlé is the number three on the British chocolate confectionery market. 776 Some Nestlé products (among others Smarties) contain palm oil. 777 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).778


The following information is available on companies producing sugar confectionery in the United Kingdom:

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• Cadbury Schweppes Plc.

25 Berkeley Square London W1J 6HB England Telephone: +44-207-8305095 Fax: +44-207-8305157 Website: www.cadburyschweppes.com Cadbury Schweppes is a listed British company, one of the largest confectionery and soft drinks companies in the world. On the British market sugar confectionery is sold under the brand names Cadbury, Trebor, Bassett's, Fry's, Maynards, Sharps, Barratt and Butterkist.779 Cadbury-Schweppes was a customer of the Indonesian oil palm plantation group PT PP London Sumatra Indonesia in 2002, possibly buying CPO. 780 A supplier of palm oil ingredients to Cadbury Schweppes is the Dutch company Loders Croklaan (see paragraph 4.2.2).781 A recent study by ISIS Asset Management and ProForest states that Cadbury-Schweppes “has been able to source [palm oil] from suppliers that are known to produce in line with sustainable development objectives”. 782 It should be noted that Cadbury-Schweppes has licensed the Cadbury brand to a number of other food companies, such as Burton’s Foods for chocolate biscuits (see paragraph 6.4.2), RHM for chocolate cakes (see paragraph 6.4.3) and Uniq for chocolate desserts (see paragraph 6.7.2).

• Nestlé UK Ltd.

St. George’s House Croydon Surrey CR9 1NR England Telephone: +44-20-86863333 Website: www.nestle.co.uk Nestlé UK is a subsidiary of the Swiss company Nestlé, the largest food company in the world. Brand names for sugar confectionery sold in the UK are Tooty Frooties, Minties, Rowntree, Mackintosh's Toffo, Willy Wonka Nerds & Dweebs, Jellytots and Polo.783 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).784


The following information is available on companies producing ice cream products in the United Kingdom:

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• Haägen-Dazs (UK) Ltd.

Harman House, 1 George Street P.O. Box 363 Uxbridge Middlesex UBQ 1YT England Telephone: +44-1895-201100 Fax: +44-1895-201101 Website: www.haagen-dazs.co.uk Haägen-Dazs (UK) is a subsidiary of the American drinks company Pillsbury, which is owned by the British listed drinks company Diageo. In the United Kingdom Haägen-Dazs (UK) markets luxury ice cream under the Haägen-Dazs brand name.785 Haägen-Dazs is the number four on the British ice cream market with a market share of around 5%.786 Some Haägen-Dazs ice cream contains palm oil. 787

• J. Sainsbury Plc. 33 Holborn London EC1 N2HT England Telephone: +44-20-76956000 Fax: +44-20-76957610 Website: www.sainsburys.co.uk J. Sainsbury owns the supermarket chain Sainsbury’s, which sells ice cream under its own private label. The company has a market share of around 5%.788

• Masterfoods Ltd. 3d Dundee Road Slough Berkshire SL1 4JY England Telephone: +44-1753-693000 Website: www.mars.com Masterfoods is a subsidiary of the American family-owned food company Mars Inc. The company is a major supplier of ice cream on the UK market, which is imported from a Mars plant in France. Brand names are Mars, Snickers, Bounty and Milky Way.789 Mars is the number three on the British ice cream market with a market share of around 6%.790

• Nestlé UK Ltd.

St. George’s House Croydon Surrey CR9 1NR England Telephone: +44-20-86863333 Website: www.nestle.co.uk

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Nestlé UK is a subsidiary of the Swiss company Nestlé, the largest food company in the world. In the United Kingdom Nestlé markets ice cream under the brand names Nestlé, Fab and Mirage.791 Nestlé is the number two on the British ice cream market with a market share of around 6%.792 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).793

• Tesco Plc. New Tesco House, Delamare Road Cheshunt Hertfordshire EN8 9SL England Telephone: +44-1992-632222 E-mail: [email protected] Website: www.tesco.co.uk The supermarket chain Tesco sells ice cream under its own private label. The company has a market share of around 5%.794

• Unilever Ice Cream and Frozen Food Ltd. Walton Court, Station Avenue Walton on Thames Surrey KT12 1NT England Telephone: +44-1932-263000 Website: www.unilever.co.uk Unilever Ice Cream and Frozen Food (formerly Birds Eye Wall’s) is the UK's market leader in both frozen food and ice cream. Ice cream brands include Magnum, Solero, Cornetto and Carte d'Or.795 Unilever is the market leader on the British ice cream market with a market share of over 40%.796 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 6.3.2.



The total UK snacks market reached a value of US$ 3.6 billion (£ 2.5 billion) in 2001. The snack market can be segmented as follows: 797

• Popcorn £ 72 million • Potato crisps £ 972 million • Savoury snacks (incl. corn crisps) £ 1,180 million • Snack nuts £ 149 million

The total value of the UK savoury biscuits market amounted to US$ 492 million (£ 342 million) in 2001.798

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The following information is available on companies producing nuts, crisps, popcorn and savoury snacks in the United Kingdom: • Cadbury Schweppes Plc.

25 Berkeley Square London W1J 6HB England Telephone: +44-207-8305095 Fax: +44-207-8305157 Website: www.cadburyschweppes.com Cadbury Schweppes is a listed British company, one of the largest confectionery and soft drinks companies in the world. On the British market popcorn is sold under the brand names Butterkist.799 Butterkist is the largest popcorn brand in the UK, accounting for more than one third of the market.800

• Golden Wonder Ltd. Edinburgh House 1 Abbey Street Market Harborough Leicestershire LE16 9AA England Telephone: +44-1858-410410 Fax: +44-1858-461000 Website: www.goldenwonder.com Golden Wonder is an independent British snack producer. In the UK, Golden Wonder supplies crisps under the Golden Wonder brand and other salt snacks under the Wotsits and Nik Naks brands.801 On the UK crisps market Golden Wonder is presently the number three, with a market share of around 14%.802 On the UK savoury snacks market Golden Wonder also is the number three.803

• Procter & Gamble UK & Ireland Ltd.

The Heights, Brooklands Weybridge Surrey KT13 0XP England Telephone: +44-1932-896000 Fax: +44-1932-896200 E-mail: [email protected] Website: www.eu.pg.com Procter & Gamble UK & Ireland is a subsidiary of the American listed company Procter & Gamble, which is one of the largest producers of personal care and household care products in the world. In the United Kingdom the company is also selling salt snacks under the Pringles brand. 804 On the UK savoury snacks market Procter & Gamble now is the number four.805

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• United Biscuits Ltd. Hayes Park North Hayes End Road Hayes Middlesex UB4 8EE England Telephone: +44-208-2345000 Website: www.unitedbiscuits.com United Biscuits is a subsidiary of the investment consortium Finalrealm and the American listed food company Kraft Foods. With Hula Hoops and McCoys, United Biscuits claims to have the second and fourth biggest UK snack brands in the everyday market. And KP Nuts is brand leader in the UK nuts market with a 55% share. Other United Biscuits brand names for snacks are Mini Cheddars, Discos, Frisps and Skips. 806 On the UK crisps market United Biscuits is the number two, with a market share of just under 15%.807 On the UK savoury snacks market United Biscuits is one of the two leaders, together with Walkers.808 On the UK snack nuts market United Biscuits is the market leader, with a market share of over 50%.809 Crips and snacks are fried in palmolein by United Biscuits.810

• Walkers Snack Foods Ltd. 11 Burson Road Beaumont Leys PO Box 23 Leicester LE4 8ZU England Telephone: +44-116-2342000 Website: walkers.corpex.com Walkers Snack Foods is a subsidiary of the American snacks company Frito-Lay, which belongs to the listed American drinks company PepsiCo. Walkers is the largest producer of crisps and other salt snacks in the United Kingdom, with 11 million packets of Walkers consumed every day. Brand names are Walkers, Cheetos, Dippas, Doritos, Shots, Square, Wotsits, Quavers, 3D, Monster Munck, Chipsticks, Square Crisps and Sensations. All Walkers’ products are fried in palm oil.811 Walkers is the leading crisps brand in the UK, holding over 50% market share.812 On the UK savoury snacks market Walkers is one of the two leaders, together with United Biscuits.813 The Food Oils Group of Archer Daniels Midland in May 2002 received the Frito-Lay North America 2001 Supplier of the Year award, for its supplies of vegetable oil (including palm oil).814 It is possible that ADM is also a preferred supplier of Frito-Lay’s operations in Europe.


The following information is available on companies producing savoury biscuits in the United Kingdom:

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• Jacobs Bakery Ltd.

Canal Street South Wigston Leicester LE18 4PQ England Telephone: +44-1162-785133 Fax: +44-1162-781489 E-mail: [email protected] Jacobs Bakery is a subsidiary of the French listed food company Danone. In the United Kingdom biscuits are sold under the Jacob’s, Danone and LU brand names.815 On the UK savoury biscuits market Jacobs is one of the two leaders, together with United Biscuits.816 Jacob’s Fig Rolls and Jacob’s Cream Crackers contain palm oil. 817

• United Biscuits Ltd. Hayes Park North Hayes End Road Hayes Middlesex UB4 8EE England Telephone: +44-208-2345000 Website: www.unitedbiscuits.com United Biscuits is a subsidiary of the investment consortium Finalrealm and the American listed food company Kraft Foods. The brand name for savoury biscuits is McVitie’s. 818 On the UK savoury biscuits market United Biscuits is one of the two leaders, together with Jacobs.819 Crips and snacks are fried in palmolein by United Biscuits.820


The following information is available on companies producing meat snacks in the United Kingdom:

• Grampian Country Food Group Ltd.

Grampian House, Mugiemoss Road Bucksburn Aberdeen AB21 9XA Scotland Telephone: +44-1224-696113 Fax: +44-1224 697027 E-mail: [email protected] Website: www.gcfg.com Grampian Country Food Group is the UK's leading privately owned meat business, producing fresh and frozen chicken, pork, beef and lamb products for the retail, wholesale and foodservice sectors. Grampian also supplies sausages and other meat snacks, under the brand names Grampian, Sovereign, Sunny Chicken, Hall’s, Wee Willie Winkies and Cooks Town.821

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• Nestlé UK Ltd.

St. George’s House Croydon Surrey CR9 1NR England Telephone: +44-20-86863333 Website: www.nestle.co.uk Nestlé UK is a subsidiary of the Swiss company Nestlé, the largest food company in the world. In the United Kingdom Nestlé markets confectionery, mineral water, coffee, ice cream, breakfast cereals, dairy deserts, creams, meat snacks, nutrition food and pasta. The brand name for meat snacks is Herta.822 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).823


Beverley House St. Stephen’s Square Hull HU1 3XG England Telephone: +44-1482-325432 Fax: +44-1482-226136 Northern Foods is a listed British food company, specialising in producing private label products for the UK’s largest retailers. The private labels of the supermarket chains Marks & Spencer, Tesco, Asda, Sainsbury’s and Safeway account for 70% of Northern Foods’ sales. Northern Foods is a large producer of meat snack and other savoury products under the Pork Farms, Bowyers and Hollands brands and major retailers’ labels. 824


The following information is available on companies producing pre-fried chips in the United Kingdom: • Boots Frites UK Ltd.

Norden House 796 Edenfield Road Norden Rochdale OL12 7RB England Telephone: +44-170-6350647 Fax: +44-170-6710677 E-mail: [email protected] Boots Frites is a subsidiary of the Dutch potato product company Aviko. The company has three factories in the Netherlands and Germany, producing cooled and frozen pre-fried chips for the foodservice market in the Netherlands, Germany, France and the United Kingdom. The products are fried in palm oil.825

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• Garden Isle Frozen Foods Ltd. Weasenham Lane Industrial Estate Wisbech Cambridgeshire PE13 2RN England Telephone: +44-1945-468800 Fax: +44-1945-468801 E-mail: [email protected] Website: www.gardenisle.co.uk Garden Isle is an independent British producer of frozen potato products, including pre-fried chips. Garden Isle processes 150,000 tons of potatoes annually. Products are sold under private labels.826

• McCain Foods (GB) Ltd. Havers Hill, Eastfield Scarborough North Yorkshire YO11 3BS England Telephone: +44-1723-584141 Website: www.mccain.co.uk McCain Foods is a subsidiary of the Canadian company McCain, which claims to be the global market leader in frozen potato products. In the United Kingdom, McCain has seven processing facilities (four crisps plants, one pizza plant, one appetizer plant and one cheese plant). The company is the market leader on the retail and foodservice market and claims to supply 1 in every 3 frozen chips consumed in the UK today. Products are sold under the McCain brand name.827 McCain supplies all chips served by the fast food chain McDonald’s, which accounts for 20% of McCain’s global sales.828



The market for fresh prepared foods comprises all types of fresh prepared foods which are sold in the retail sector (supermarkets and other stores), pre-packed or packed in the store. The British market for fresh prepared foods had a total consumer value of £ 5,778 million in 2002.

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Table 50 Fresh prepared foods market in the UK in 2002 829

Segment Million £ %

Ready meals 1,326 22.9%

Yoghurts and fromage frais 1,010 17.5%

Salads 746 12.9%

Pastry products 658 11.4%

Sandwiches 588 10.2%

Pizza 316 5.5%

Fruit juice 305 5.3%

Quiche and flan 166 2.9%

Pasta 111 1.9%

Dips & dressings 109 1.9%

Bread (accompanying hot meals) 95 1.6%

Soups 83 1.4%

Sauces 77 1.3%

Party products 69 1.2%

Prepared fruit 61 1.1%

Stir fry vegetables 58 1.0%

Total 5,778 100%


The following information is available on companies producing fresh prepared foods in the United Kingdom:

• Findus Ltd.

Crown House 2 Gloucester Road Redhill Surrey RH1 1FD England Telephone: +44-1737-784100 Fax: +44-1737-784038 Website: www.findus.co.uk The British company Findus is a leading international supplier of frozen foods operating in the retail and foodservices sectors. On the British market Findus supplies a large number of frozen ready-made meals. The brand name is Findus.830

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• Geest Plc.

Midgate House Midgate Peterborough PE1 1TN England Telephone: +44-1775-761111 Fax: +44-1775-763042 E-mail: [email protected] Website: www.geest.co.uk Geest is a major British producer of fresh prepared foods, listed on the stock exchange. Its products are sold entirely under private labels by supermarkets and other retail stores. Geest claims to be the market leader in the following segments of the UK fresh prepared foods market: salads, pizza, pasta, dips & dressings, soups and stir fry vegetables. In the sauces segment Geest claims to be number two, and in the ready meals, bread and prepared fruit segments Geest claims to be number three on the UK market. 831

• McCain Foods (GB) Ltd. Havers Hill, Eastfield Scarborough North Yorkshire YO11 3BS England Telephone: +44-1723-584141 Website: www.mccain.co.uk McCain Foods is a subsidiary of the Canadian company McCain, which claims to be the global market leader in frozen potato products. The company is a major supplier of frozen pizza’s on the UK market. Products are sold under the McCain brand name.832


Beverley House St. Stephen’s Square Hull HU1 3XG England Telephone: +44-1482-325432 Fax: +44-1482-226136 Northern Foods is a listed British food company, specialising in producing private label products for the UK’s largest retailers. The private labels of the supermarket chains Marks & Spencer, Tesco, Asda, Sainsbury’s and Safeway account for 70% of Northern Foods’ sales. Northern Foods claims to be the UK market leader in ready meals, and a major producer of hot and cold-eating pies, pasties, sausage rolls, quiches, flans and Scotch eggs. All of these products are sold under private labels. Northern Foods is also producing frozen pizzas, pastry products and fish under the Goodfella’s, Green Isle and Donegal Catch brands, as well as retailers' own labels. The company also produces grillsteaks, burgers and a growing range of meat-free products under the Dalepak and Ross brands.833

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• Perkins Foods Holdings Ltd. Regus House, Victory Way Admirals Park, Crossways Dartford Kent DA2 6AG United Kingdom Telephone: +44-1322-303068 Fax: +44-1322-303086 Website: www.perkinsfoods.co.uk Perkins Foods Holdings Ltd. is a privately owned British manufacturer of chilled and frozen convenience foods. Fresh prepared foods the company supplies include chilled ready meals, sandwich fillings, fresh pickles, chutneys & relishes, hard boiled eggs, mayonnaise, fillings, dips, patés, chutneys, potato toppers, sliced cooked meats, poultry, stir fry's, meal accompaniments, snacks, sauces and dips, soups and beansprouts. 834 Perkins Foods is majority-owned by ABN AMRO Capital (77.3%).835

• RHM Ltd.

Chapel House, Liston Road Marlow Buckinghamshire SL7 1TJ Telephone: +44-1628-478484 Website: www.rhm.com RHM (formerly Rank Hovis McDougall) is one of the largest food companies in the UK. RHM is Marks & Spencer's second largest food supplier, manufacturing Marks & Spencer chilled ready meals and desserts, celebration cakes and all their premium jams and marmalades. RHM also supplies chilled ready meals to Morrisons.836

• Tryton Foods Ltd. Trinity Street Hull HU3 1EY England Telephone: +44-1482-223223 Fax: +44-1482-218610 Website: www.auntbessies.co.uk Tryton Foods is private British producer of frozen Yorkshire puddings frozen desserts and frozen ready meals under the Aunt Bessie’s brand name.837

• Uniq Plc. No.1 Chalfont Park Gerrards Cross Buckinghamshire SL9 0UN England Telephone: +44-1753-276000 Fax: +44-1753-276071 E-mail: [email protected] Website: www.uniqplc.com

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Uniq Plc. is a major British producer of fresh prepared foods, listed on the stock exchange. The company supplies sandwiches, prepared salads, luxury desserts, chocolate desserts, salmon and seafood products, poultry products, cottage cheese, dips, party foods, pates and ready meals under the Buxted, Pinneys and Smedley's brand names and under private labels. On the chocolate dessert market Uniq has a 37% share with the Cadbury's brand (sold under license). Uniq is a major supplier to all of the country's leading food retailers (Marks & Spencer, Sainsbury’s) as well as quick service restaurant giants KFC and Burger King. 838


6.8.1 Producers of baby food

The following information is available on companies producing baby food in the United Kingdom:

• H.J. Heinz UK Ltd.

Hayes Park South Building Hayes End Road Hayes Middlesex UB4 8AL England Telephone: +44-20-85737757 Fax: +44-20-88482325 Website: www.heinz.co.uk H.J. Heinz is a subsidiary of the listed American food company H.J. Heinz Company, one of the largest food companies in the world. In the United Kingdom H.J. Heinz supplies baby food under the Farlis brand name.839 Farlis dry baby food contains palm oil, obtained from Malaysia through a UK supplier.840

6.8.2 Producers of pasta

The following information is available on companies producing pasta in the United Kingdom: • Nestlé UK Ltd.

St. George’s House Croydon Surrey CR9 1NR England Telephone: +44-20-86863333 Website: www.nestle.co.uk Nestlé UK is a subsidiary of the Swiss company Nestlé, the largest food company in the world. In the United Kingdom Nestlé markets confectionery, mineral water, coffee, ice cream, breakfast cereals, dairy deserts, creams, meat snacks, nutrition food and pasta. On the pasta market Nestlé is the market leader with the Buitoni brand.841 Some Buitoni products contain palm oil.842 A supplier of palm oil ingredients to Nestlé is the Dutch company Loders Croklaan (see paragraph 4.2.2).843

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The United Kingdom skincare market as a whole (facial care, hand care, body care and depilatory products) reached a value of US$ 911 million (£ 633 million) in 2001. 844 The United Kingdom hand and body care market reached a value of US$ 261 million (£ 181 million) in 2001, with body care products accounting for three quarters of the market and hand care products taking the remaining share.845 The UK soap market reached a total value of US$ 268 million (£ 186 million) in 2001. Private labels represent nearly 20% of the market. 846 In 2002, the British cosmetics market had a total value of € 8,884 million (£ 5,587 million).847

6.9.2 Producers of oleochemical ingredients

The following information is available on companies producing oleochemical ingredients in the United Kingdom:

• Croda Chemicals Europe Ltd.

Cowick Hall Snaith, Goole East Yorkshire DN14 9AA England Telephone: +44-1405-860551 Fax: +44-1405-860205 Website: www.croda.co.uk Croda Chemicals Europe Ltd. is part of the British chemical group Croda International Plc., one of the world's leading producers of speciality chemicals for a variety of markets. Croda Chemicals Europe Ltd. manufactures a range of oleochemical ingredients for the personal care, pharmaceutical, nutritional and other industries. Some of these products are based upon palm oil or palm kernel oil.848

• Stephenson Group

P.O. Box 305, Listerhills Road Bradford West Yorkshire BD7 1HY England Telephone: +44-1274-723811 Fax: +44-1274-370108 E-mail: [email protected] Website: www.stephensongroup.co.uk Stephenson Group manufactures speciality chemicals for a range of industries and applications from two sites in Yorkshire. The company ships its products to customers in more than 50 countries around the globe. The company’s products range from speciality finishes for textiles, through chemicals for the recycling of waste paper to organic soap bases for the cosmetic soap market. 849 Stephenson Group is an important buyer of oil palm ingredients in the UK. 850

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The following information is available on companies producing cosmetics and personal care products in the United Kingdom: • Beiersdorf UK Ltd.

3500 Parkside The Birmingham Business Park Birmingham B37 7YS England Telephone: +44+121-3298800 Fax: +44-121-3298801 Website: www.beiersdorf.co.uk Beiersdorf Nederland is a subsidiary of the German cosmetics company Beiersdorf. In the Netherlands Beiersdorf produces shampoo, bath and douche products and deodorizer. Other products are imported. Brand names in the UK are 8 x 4, Atrix, Eucerin, Hansaplast, Labello, La Prairie, Florena, Futuro, Juvena and Nivea.851 Nivea leads the body care mass sector with a market share over 30% and also attracts a 20% share of the hand care mass market. 852

• Colgate-Palmolive (UK) Ltd.

Guildford Business Park, Middleton Road Guildford Surrey GU2 8JZ England Telephone: +44-1483-302222 Website: www.colgate.co.uk Colgate-Palmolive (UK) is a subsidiary of the American company Colgate-Palmolive, a leading global supplier of oral care and personal care products. Brand names are Colgate, Palmolive, Macleans, Ultrabrite and Plax. The original Palmolive soap, launched in 1898, was made from palm oil and olive oil.853 Various Colgate-Palmolive products contain oil palm products.854 manufacturing and retailing of an international speciality brand involved in personal care products, toiletries, home fragrances and fine foods worldwide.

• Coty (UK) Ltd. St. Georges House 5 St. Georges Rd London SW19 4DR England Telephone: +44-20-89471300 Fax: +44-20-89711399 Website: www.coty.com Coty is an American producer of personal care products, which is owned by the German company Joh.A.Benckiser. Brand names are Adidas, Stetson, Aspen, The Healing Garden, Calgon, Céline Dion, Astor, Lancaster, Davidoff, JOOP!, Jennifer Lopez, Jil Sander, Isabella Rossellini, Yue-Sai, Chopard, Esprit, Club Med, Jovan, Chopard, Vivienne Westwood, Rimmel, Cutex and Sensique du Pierre Robert.855

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• Crabtree & Evelyn Ltd.

27 Kelso Place London W8 5QG England Telephone: 44-207-3610499 Fax: 44-207-3610498 E-Mail: [email protected] Website: www.crabtree-evelyn.co.uk Crabtree & Evelyn is a subsidiary of the Malaysian plantation and property company Kuala Lumpur Kepong Bhd. The company manufactures and retails personal care products, toiletries, home fragrances and fine foods worldwide, under the brand name Crabtree & Evelyn. It is a small British producer of soap and other personal care products, sold entire under private labels. Many of these products contain oil palm products, which are probably supplied by the plantations of Kuala Lumpur Kepong in Malaysia and Indonesia.856

• Elizabeth Arden (UK) Ltd. 271 Regent Street Drighlington London W1R 8AA England Telephone: +44-20-75742700 Website: www.elizabetharden.com Elizabeth Arden (UK) is a subsidiary of the American listen cosmetics company Elizabeth Arden. On the UK market, Elizabeth Arden sells cosmetics products under the following brand names: Elizabeth Arden, 5th Avenue, ardenbeauty, Elizabeth Taylor's White Diamonds, Forever Elizabeth, White Shoulders, Geoffrey Beene's Grey Flannel, Halston, PS Fine Cologne for Men, Giorgio Beverly Hills, Ceramides and Eight Hour Cream.857 On the premium body care market in the UK, Elizabeth Arden is one of the three leading brands. 858

• Estée Lauder Cosmetics Ltd.

73 Grosvenor Street London WIK 3BQ England Telephone: +44-1730-266531 Website: www.esteelauder.co.uk Estée Lauder Cosmetics is a subsidiary of the American company Estée Lauder Companies, one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. Brand names are Estée Lauder, Aramis, Clinique, Prescriptives, Origins, M·A·C, La Mer, Bobbi Brown, Tommy Hilfiger, jane, Donna Karan, Aveda, Stila, Jo Malone, Bumble and bumble, Kate Spade Beauty, Darphin, Michael Kors, and Rodan and Fields.859 Clinique leads the premium body care market in the UK, with over one third of the market held. 860 Estée Lauder also leads the luxury cleanser market with a market share over 20% as well as the luxury moisturizer market with a 30% market share.861

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• Henkel Ltd. Apollo Court 2 Bishop Square Business Park Hatfield Hertfordshire AL10 9EY England Telephone: +44-1707-635000 Fax: +44-1707-635099 Website: www.henkel.co.uk Henkel is a subsidiary of the German company Henkel, a leading company in hair care and personal care products. Brand names for personal care products on the UK market are Schwarzkopf, Live, Country Colours, Nordic Colours, Vital, Supersoft, Gliss, Theramed and Clynol.862

• L’Oréal (UK) Ltd.

255 Hammersmith Road London W6 8AZ England Telephone: +44+20-87624000 Fax: +44-20-87624001 E-mail: [email protected] Website: www.loreal.co.uk L’Oréal UK is a subsidiary of the French company Group L’Oréal, the largest cosmetics company in the world. In the UK, L'Oréal Group brands can be found in nine out of ten homes and three L'Oréal products are bought every second. Brand names in the UK are Ambre Solaire, Giorgio Armani, Ralph Lauren, Cacharel, Paloma Picasso, Lancôme, Helena Rubinstein, L'Oréal Paris, Garnier, Maybelline New York, Kérastase Paris, Redken 5th Avenue NYC, Matrix and Vichy.863 In 2001 L’Oréal accounted for over 25% of the UK mass cleanser market and over 20% of the mass moisturizer market. On the luxury cleanser market L’Oréal gained a market share of less than 15% and in the luxury moisturizer market it had around 10%. 864 Some L’Oréal products might contain palm oil.865

• Lever Fabergé Ltd.

3 St James's Road Kingston-upon-Thames Surrey KT1 2BA England Telephone: +44-20-84396000 Fax: +44-20-84396620 Website: www.leveruk.com Lever Fabergé is a subsidiary of the Anglo-Dutch multinational Unilever and was formed in 2001 through the merger of the companies Elida Fabergé and Lever Brothers. Lever Fabergé now is the number one personal care provider in the UK. Lever Fabergé's brands (Ponds, Lynx, Sure, Impulse, Dove, Organics, Physio Sport, Sunsilk, Timotei and Vaseline) have a significant presence in the personal care market, which is worth more than £ 2.7 billion.866 Vaseline is the leading brand in the hand care mass market in the UK with a market share just under 25%. 867

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Lever Fabergé is the number two on the UK soap market with a 25% market share. 868 Some of Lever Fabergé’s products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 6.3.2. Ponds Cream and Aloe Vera Lotion contain palm oil. These products are made in Germany and Czechoslovakia and are then exported to the UK. 869

• LVMH Perfumes & Cosmetics UK Ltd. 66-38 Marble Arch House London W1H5AF England Telephone: +44-20-75636300 Fax: +44-20-75638865 Website: www.lvmh.com LVMH Perfumes & Cosmetics UK is a subsidiary of the French luxury goods company Groupe LVMH, which sells wines and spirits, watches and jewellery, fashion and leather goods and perfumes and cosmetics. Cosmetics brands are Christian Dior, Guerlain, Givenchy, Kenzo, Laflachère, Bliss, BeneFit, Fresh, Make Up For Ever, Acqua di Parma and Perfumes Loewe.870

• Procter & Gamble UK & Ireland Ltd.

The Heights, Brooklands Weybridge Surrey KT13 0XP England Telephone: +44-1932-896000 Fax: +44-1932-896200 E-mail: [email protected] Website: www.eu.pg.com Procter & Gamble UK & Ireland is a subsidiary of the American listed company Procter & Gamble, one of the largest producers of personal care and household care products in the world. Brand names for personal care products in the United Kingdom are Head & Shoulders, Clairol, Max Factor, Hugo Boss, Lacoste, Giorgio Beverly Hills, Laura Biagiotti, Olay, Pantène Pro-V, Kukident, Vicks and Blend-a-med.871 In 2001 Olay accounted for around 10% of the UK cleanser and moisturizer mass markets.872 Olay and various other Procter & Gamble products may contain palm oil. 873

• PZ Cussons Plc.

PZ Cussons House, Bird Hall Lane Stockport Cheshire SK3 0XN England Tel: +44-161-4918000 Fax: +44-161-4918191 E-mail: [email protected] Website: www.cussons.com

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PZ Cussons Plc. is a large British company producing soap and other personal care products, as well as other products such as dish washing liquid, laundry and edible fats. Key brands in personal care include Imperial Leather (the top selling soap in the UK) and Carex, but the portfolio also includes Original Source, Cussons Baby, Luksja, Premier and Joy. In non personal care key brands include Morning Fresh, Radiant, E, 1001 and Minerva.874 PZ Cussons is the market leader on the UK soap market with a 30% market share. 875 PZ Cussons Plc. is an important buyer of oil palm ingredients in the UK. All bar soaps of PZ Cussons contain palm oil and probably other products as well. 876

• Standard Soap Company Ltd. Castle Works, Derby Road Ashby de la Zouch Leicestershire LE65 2HG England Telephone: +44-1530-410000 Fax: +44-1530-410001 E-mail: [email protected] Website: www.standardsoap.co.uk Standard Soap Company is a subsidiary of the Malaysian plantation and property company Kuala Lumpur Kepong Bhd. It is a medium-sized British producer of soap and other personal care products, sold entire under private labels. Many of these products contain oil palm products, which are probably supplied by the plantations of Kuala Lumpur Kepong in Malaysia and Indonesia.877


The following information is available on companies producing clothes and household care products in the United Kingdom: • Henkel Ltd.

Apollo Court 2 Bishop Square Business Park Hatfield Hertfordshire AL10 9EY England Telephone: +44-1707-635000 Fax: +44-1707-635099 Website: www.henkel.co.uk Henkel is a subsidiary of the German company Henkel, a leading company in household care products. Brand names for household care products on the UK market are Svit, Frish, Limelite and Glist.878

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• Lever Fabergé Ltd. 3 St James's Road Kingston-upon-Thames Surrey KT1 2BA Telephone: +44-20-84396000 Fax: +44-20-84396620 Website: www.leveruk.com Lever Fabergé is a subsidiary of the Anglo-Dutch multinational Unilever and was formed in 2001 through the merger of the companies Elida Fabergé and Lever Brothers. Lever Fabergé now is the number one household care provider in the UK. Brand names are Persil, Surf, Comfort, Domestos and Cif.879 Some of these products probably contain oil palm ingredients. For Unilever’s links with Indonesian palm oil, see paragraph 6.3.2.

• Procter & Gamble UK & Ireland Ltd. The Heights, Brooklands Weybridge Surrey KT13 0XP England Telephone: +44-1932-896000 Fax: +44-1932-896200 E-mail: [email protected] Website: www.eu.pg.com Procter & Gamble UK & Ireland is a subsidiary of the American listed company Procter & Gamble, one of the largest producers of personal care and household care products in the world. Brand names for household care products in the United Kingdom are Ariel, Bold, Dash, Fairy Non-Biological, Tide, Flash, MrProper, Fresh, Vizir, Febrèze, Antikal and Swiffer. 880 Various Procter & Gamble products may contain palm oil. 881

• Reckitt Benckiser Plc.

103-105 Bath Road Slough Berkshire SL1 3UH England Telephone: +44-1753-217800 Fax: +44-1753-217899 Website: www.reckittbenckiser.com Reckitt Benckiser is a British listed producer of household care products. The largest shareholder is the German company Joh.A.Benckiser (15.7%). Reckitt Benckiser claims to be the world no. 1 in household cleaning. Brand names for household care products on the British market are Dettol, Harpic, Vanish, Woolite, Calgon, Finish and Airwick. 882

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6.10 Animal feed


Of total British animal feed production in 2002 (9.3 million tonnes), around 453,000 tonnes (4.9%) consisted of “Other oilseed cake and meal”. This category includes cake and meal derived from various oilseeds, besides palm kernel: coconut, shea, illipe and others (but not rapeseed, soybean or sunflower).883 Palm kernel meal probably made up the largest part of this category, as PKM imports into the UK totalled 392,100 tonnes in 2002 (see Table 47).

Table 51 Production of animal feed in the UK (in 1,000 MT) 884



Pig feed 1,858 1,703 18.3%

Poultry feed 2,726 2,920 31.4%

Sheep feed 654 578 6.2%

Horse feed 178 179 1.9%

Other feed 304 311 3.3%

Total 9,519 9,293 100%

Other oilseed content (in 1,000 MT) Palm kernel, coconut, shea, illipe and others 550 453 4.9%


Animal feed producers in the United Kingdom are organized in the United Kingdom Agricultural Supply Trade Association (UKASTA). The following information is available on companies producing animal feed products in the United Kingdom:

• Unitrition International Ltd.

Olympia Mills Barlby Road Selby North Yorkshire YO8 5AF England Telephone: +44-1757-244111 Fax: +44-1757-244088 E-mail: [email protected] Website: www.unitrition.co.uk Unitrition International Ltd. is a subsidiary of BOCM Pauls Plc., the UK's largest animal feed compounder. Unitrition crushes a large number of oilseeds (including palm kernels), producing hard and soft oils for animal feeds. Vegetable oils are supplied to major manufacturers in the food, pharmaceutical, and industrial markets. Expeller cakes and extracted meals are supplied to compounders and merchants for use in animal feeds.885

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Unitrition probably is the only palm kernel crushing plant in the United Kingdom. 886 This would mean that all palm kernels imported into the UK are destined for Unitrition. Palm kernel imports into the UK reached 14,200 tonnes in 2002, of which 5,000 tonnes came from Indonesia. 887

6.11 Financial institutions

6.11.1 Private commercial and investment banks

Commercial banks extend loans to companies and investment banks help companies with issuing shares and bonds. The information below details the involvement of British private commercial and investment banks in the financing of the Indonesian oil palm plantation sector: • Barclays Bank Plc.

54 Lombard Street, London EC3P 3AH England Telephone: +44-20-76995000 Website: www.barclays.co.uk Barclays Bank is one of the largest British banking groups. Barclays is quoted on the London Stock Exchange. Barclays also owns the British investment bank De Zoete Wedd.888 The information below details the involvement of Barclays Bank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• CDC Group

• Barclays Bank extended a loan to CDC Group Plc. before 1999. At the end of 1999,

US$ 3.1 million was outstanding, which was repaid in 2000. 889 • CDC Group Plc.

One Bessborough Gardens London SW1V 2JQ England Telephone: +44-20-78284488 Fax: +44-20-78286505 E-mail: [email protected] Website: www.cdcgroup.com CDC Group Plc. is a British investment bank, investing mainly in small and medium-sized enterprises in Asia, Africa and Latin America. The CDC Group is still majority owned by the British government, but is in the process of being privatised.890 The information below details the involvement of CDC Group in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• CDC Group extended two loans totalling US$ 14.4 million to PT Agro Indomas in

December 1998. The loans are due in December 2007. 891

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• CDC Group is one of the principal bankers of PT Agro Indomas. 892

• CDC Group

• CDC Group owns majority holdings in four Indonesian oil palm plantation companies

with a total concession area of 45,400 hectares. We estimate the total value of these shareholdings at £ 30 million. 893

• HSBC Bank Plc.

8 Canada Square London E14 5HQ United Kingdom Telephone: 44-20-79918888 Fax: 44-20-79914639 Website: www.hsbc.com The HSBC Group is one of the largest British banking groups. HSBC is quoted on the London Stock Exchange. HSBC also owns the British investment bank James Capel. As the original name - Hong Kong and Shanghai Banking Corporation - indicates, HSBC has its roots in East Asia. In Indonesia, HSBC is among the top four foreign banks.894 The information below details the involvement of HSBC Bank in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• Anglo-Eastern Group

• HSBC extended a loan of US$ 10 million to Anglo-Eastern Plantations Plc. in

October 2000. The loan is due in March 2005. 895 • HSBC is one of the principal bankers of Anglo-Eastern Plantations Plc. 896

• Bakrie Group

• HSBC arranged a US$ 27 million syndicated credit facility for PT Bakrie Sumatera

Plantations Tbk. in June 1995, and participated in the amount of US$ 8.0 million. The loan would have matured in June 1998, but was repaid in 1996. 897

• HSBC co-arranged a US$ 75 million syndicated loan to PT Bakrie Sumatera

Plantations in October 1996 and participated in the amount of US$ 6.0 million. The loan was restructured in October 2000, and will mature in early 2004. 898


• HSBC is one of the principal bankers of PT Agro Indomas. 899 • HSBC is one of the principal bankers of the five Malaysian oil palm companies of the

Carson Cumberbatch Group, which jointly own a majority stake in PT Agro Indomas.900

• Kuala Lumpur Kepong Group

• HSBC is one of the principal bankers of Kuala Lumpur Kepong Bhd. 901

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• HSBC is one of the principal bankers of Kumpulan Guthrie Bhd. 902 • Kuok Group

• HSBC is one of the principal bankers of PPB Oil Palms Bhd.903


• HSBC participated in the amount of US$ 1.5 million in a US$ 42.0 million syndicated loan to PT PP London Sumatra Indonesia Tbk. in November 1994. The loan was refinanced in May 1996. 904

• HSBC participated in the amount of US$ 5.0 million in a US$ 141.5 million

syndicated loan to PT Pan London Sumatra Plantation in November 1994. The loan was refinanced in May 1996. 905

• HSBC co-arranged a US$ 132 million syndicated loan to PT PP London Sumatra

Indonesia Tbk. in May 1996, and participated in the amount of US$ 24.0 million. The loan became due in May 2001. At the end of 2002 US$ 122 million was outstanding, plus deferred interest. 906

• HSBC co-arranged a US$ 65 million syndicated loan to PT Pan London Sumatra

Plantation in May 1996, and participated in the amount of US$ 11.84 million. The loan was refinanced in November 1996. 907

• HSBC participated in the initial public offering (IPO) of PT PP London Sumatra

Indonesia Tbk. on the Jakarta and Surabaya stock exchanges in July 1996. The IPO raised Rp 180.4 billion (US$ 76.8 million) for the company. 908

• HSBC co-arranged a US$ 65 million syndicated loan to PT Pan London Sumatra

Plantation in November 1996, and participated in the amount of US$ 17.0 million. The loan became due in November 2001, but was possibly refinanced in September 1997. 909

• HSBC arranged a US$ 213 million syndicated loan to PT Pan London Sumatra

Plantation in September 1997 and participated in the amount of an estimated US$ 25.0 million. Present status is unknown. 910

• HSBC was appointed coordinator for the debt restructuring of PT PP London

Sumatra Indonesia Tbk. in April 1998. 911

• Rowe Evans Group

• HSBC is one of the principal bankers of Rowe Evans Investments Plc. 912

• Salim Group

• HSBC provided a revolving credit facility to PT Indofood Sukses Makmur with a maximum credit limit of Rp 30 billion (US$ 2.9 million) during 2001. This facility matured in May 2002. 913

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• Sinar Mas Group

• HSBC participated in the initial public offering (IPO) of Golden Agri-Resources Ltd. on the Singapore Stock Exchange in July 1999. The company raised US$ 360.2 million with the IPO. HSBC was responsible for raising US$ 8.0 million for the company. 914

• Wilmar Group

• HSBC participated in a one-year US$ 1,750 million revolving credit facility for Archer Daniels Midland Co. in March 1999. The facility matured in March 2000. 915

• HSBC co-arranged a one-year US$ 1,150 million revolving credit facility for Archer

Daniels Midland Co. in March 2001. The facility matured in March 2002. 916

• HSBC co-arranged a one-year US$ 900 million revolving credit facility for Archer Daniels Midland Co. in March 2002. The facility matured in March 2003. 917

• Lazard Brothers & Co., Ltd.

50 Stratton Street London W1J 8LL England Telephone: +44-20-71872000 Fax: +44-20-70726000 Website: www.lazard.co.uk The Lazard Group is a private investment group, which consists of three separate, privately-owned investment banks: Lazard Brothers & Co., Ltd. (United Kingdom), Lazard Frères & Co. LLC (United States) and Lazard Frères & Cie. (France). As the three Lazard banks are cooperating very closely, we treat them as one group here.918 The information below details the involvement of the Lazard Group in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• Bakrie Group

• Lazard Group co-owns a shareholding of 52.5% of PT Bakrie Sumatera Plantations since November 2001. Its share is valued at £ 0.3 million. 919


• Lazard Group planned to pay up to US$ 105 million for a 50.05% shareholding in PT

PP London Sumatra Indonesia Tbk. in June 1999. In December 1999, the deal was cancelled.920

• NM Rothschild & Sons Ltd.

New Court, St. Swithin's Lane London EC4P 4DU England Tel: +44-20-72805946 Fax: 44-20-72805948 E-mail: [email protected] Website: www.nmrothschild.com

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NM Rothschild & Sons is a British private bank, specialized in asset management and investment banking. In the field of investment banking, the company has an important joint-venture - ABN AMRO Rothschild - with ABN AMRO Bank (see paragraph 4.11.1).921 The information below details the involvement of NM Rothschild & Sons in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• ABN AMRO Rothschild co-managed the initial public offering (IPO) of PT Astra Agro

Lestari Tbk. on the Stock Exchange of Jakarta in December 1997. NM Rothschild & Sons raised an estimated £ 7 million for the company. 922

• Sinar Mas Group

• ABN AMRO Rothschild participated in the initial public offering (IPO) of Golden Agri-

Resources Ltd. on the Stock Exchange of Singapore in July 1999. The company raised US$ 360.2 million with the IPO. ABN AMRO Rothschild was responsible for raising US$ 24.1 million. 923

• Royal Bank of Scotland Plc.

36 St Andrew Square Edinburgh EH2 2YB Scotland Telephone: +44-131-5568555 Fax: +44-131-5576140 E-mail: [email protected] Website: www.rbs.co.uk The Royal Bank of Scotland is one of the largest British banking groups. In March 2000, the Royal Bank of Scotland Group completed the acquisition of NatWest in a £21 billion deal which was the largest takeover in British banking history.924 The information below details the involvement of Royal Bank of Scotland in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):

• Anglo-Eastern Group

• Royal Bank of Scotland is one of the principal bankers of Anglo-Eastern Plantations

Plc. 925


• Royal Bank of Scotland participated in the amount of US$ 10.0 million in a US$ 95 million syndicated loan to PT Asianagro Lestari in April 1997. The loan was due in April 2002. The present status is unknown. 926


• Royal Bank of Scotland is one of the principal bankers of Rowe Evans Investments

Plc. 927

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• Sinar Mas Group

• Royal Bank of Scotland participated in the amount of US$ 7.25 million in the first tranche of a syndicated loan of US$ 150 million to PT SMART Tbk. in April 1995. The first tranche was repaid in April 1998.928

• Standard Chartered Plc.

1 Aldermanbury Square London EC2V 7SB United Kingdom Telephone: +44-20-72807500 Fax: +44-20-72807791 E-mail: [email protected] Website: www.standardchartered.com Standard Chartered is the worlds leading emerging markets bank, headquartered in London. Standard Chartered is quoted on the London Stock Exchange. In Indonesia, Standard Chartered is among the top four foreign banks.929 The information below details the involvement of Standard Chartered in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• Standard Chartered is one of the principal bankers of the five Malaysian oil palm

companies of the Carson Cumberbatch Group, which jointly own a majority stake in PT Agro Indomas.930

• Johor Group

• Standard Chartered was one of the principal bankers of Kulim (Malaysia) Bhd. until

2003. 931 • Kuok Group

• Standard Chartered is one of the principal bankers of PPB Oil Palms Bhd.932


• Standard Chartered is one of the principal bankers of the oil palm subsidiaries of the Napan and Risjadson Groups. 933


• Standard Chartered is one of the principal bankers of the oil palm subsidiaries of the Rowe Evans Group. 934

• Salim Group

• Standard Chartered provided a short-term revolving credit amounting to Rp 50

billion (US$ 4.8 million) to PT Indofood Sukses Makmur in November 2001. This loan matured in February 2002. 935

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• Sinar Mas Group

• Standard Chartered had a loan of Rp 180.0 billion (US$ 18.8 million) outstanding to Golden Agri-Resources at the end of 2000. Extension and maturity dates are unknown. 936

• Sipef Group

• Standard Chartered is one of the principal bankers of the Indonesian oil palm

subsidiaries of the Sipef Group. 937

• Wilmar Group

• Standard Chartered participated in a one-year US$ 1,750 million revolving credit facility for Archer Daniels Midland Co. in March 1999. The facility matured in March 2000. 938

6.11.2 Fund managers

Fund managers manage investment funds on behalf of individuals or other companies. Investment funds often invest in shares and bonds issued by companies and governments. The information below details the involvement of British fund managers in the financing of the Indonesian oil palm plantation sector: • Aberdeen Asset Management Plc.

10 Queens Terrace Aberdeen AB10 1YG Scotland Telephone: +44-1224-631999 Fax: +44-1224-647010 Aberdeen Asset Management Plc. is a leading British investment management group, which manages global assets for institutional and retail clients, from offices around the world.939 The information below details the involvement of Aberdeen Asset Management in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• Aberdeen Asset Management owned a shareholding of 14.23% in Rowe Evans

Investments Plc. at the end of 2001, with an estimated value of US$ 11.0 million. 940 • Chelsea Financial Services Plc.

St James' Hall, Moore Park Road London SW6 2JS England Telephone: +44-20-73847300 E-mail: [email protected] Website: www.chelseafs.co.uk Chelsea Financial Services is a large, independent British fund management group.941

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The information below details the involvement of Chelsea Financial Services in the financing of Indonesian oil palm plantation groups (see paragraph 2.3):


• In 2001, Chelsea Financial Services acquired US$ 1.667 million of promissory notes

issued by PT PP London Sumatra Indonesia Tbk. in October 1997. The notes were due in December 1998, but are still outstanding at this moment. However, Chelsea Financial Services has sold the notes again in 2002. 942

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Annex 1 References

1 The Politics of Extinction, Environmental Information Agency / Telapak, London, July 1998.

2 Funding Forest destruction - The Involvement of Dutch Banks in the Financing of Oil Palm Plantations in Indonesia, Research commissioned by Greenpeace Netherlands, Eric Wakker, Jan Willem van Gelder and Telapak Sawit Research Team, AIDEnvironment, Amsterdam, March 2000; Eight oil palm companies face legal action, The Jakarta Post, Jakarta, 31 July 2001.

3 Annual Report 2000, Sipef NV, Schoten, May 2001; Palm Oil, Kurt Berger, Article on website Britannia Food (www.britanniafood.com), Viewed in August 2003.

4 Palm Oil, Kurt Berger, Article on website Britannia Food (www.britanniafood.com), Viewed in August 2003.

5 Commodity Analysis Palm Oil, ISTA Mielke, Hamburg, March 2003.

6 Annual Report 2000, Sipef NV, Schoten, May 2001.

7 The World of Edible Oils, H.D. Glaudemans, M.M.J. Timmermans and H. Rijkse, Rabobank Food and Agriculture Research Department, Utrecht, August 1998; Annual Report 2000, Sipef NV, Schoten, May 2001.


9 The World of Edible Oils, H.D. Glaudemans, M.M.J. Timmermans and H. Rijkse, Rabobank Food and Agriculture Research Department, Utrecht, August 1998; Small-Scale Palm Oil Processing in Africa, Kwasi Poku, FAO Agricultural Services Bulletin 148, Food And Agriculture Organization of the United Nations, Rome, 2002.

10 Oil World Annual 2003, ISTA Mielke, Hamburg, May 2003.

11 The World of Edible Oils, H.D. Glaudemans, M.M.J. Timmermans and H. Rijkse, Rabobank Food and Agriculture Research Department, Utrecht, August 1998.

12 The World of Edible Oils, H.D. Glaudemans, M.M.J. Timmermans and H. Rijkse, Rabobank Food and Agriculture Research Department, Utrecht, August 1998.


14 Palm Kernel Oil - Origin, Commerce, Properties and Uses, T.P. Pantzaris and Mohd Jaaffar Ahmad, Palm Oil Research Institute of Malaysia, Kuala Lumpur, April 2001.

15 Website University of Northern Iowa (UNI) Ag-Based Industrial Lubricants (ABIL) Research Program (www.bcs.uni.edu/abil), Viewed in December 2003.

16 Chemical Reactions of Oil, Fat and Fat Based Products, Department of Chemical Engineering, Instituto Superior Técnico, Lisbon (Portugal), October 1997; Website Unilever Bestfoods UK (www.vdbfoods.co.uk), Viewed in December 2003.

17 Website Unilever Bestfoods UK (www.vdbfoods.co.uk), Viewed in December 2003; Website Tradepoint (www.tradepointbv.com), Viewed in December 2003.

18 Website University of Northern Iowa (UNI) Ag-Based Industrial Lubricants (ABIL) Research Program (www.bcs.uni.edu/abil), Viewed in December 2003.

19 Website Tradepoint (www.tradepointbv.com), Viewed in December 2003.

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20 Website Tradepoint (www.tradepointbv.com), Viewed in December 2003.

21 Website Unilever Bestfoods UK (www.vdbfoods.co.uk), Viewed in December 2003.

22 An overview of the ASEAN Oleochemical Market, Ting Kueh Soon, Malaysian Oil Scientists’ and Technologists’ Association (MOSTA), Presentation at The Second World Oleochemicals Conference, 5 & 6 December 2000, Amsterdam.



25 Oils And Fats In The New Millennium: The Use Of Technology To Meet Consumer Demand, K.G. Berger, Presentation at the OFIC 2000 Conference, 4 September 2000, Kuala Lumpur.

26 New Oleochemical Surfactants, A. Behler, Cognis Deutschland GmbH, Düsseldorf, Germany, in: Chemical-Technical Utilisation of Vegetable Oils - Final Conference proceedings, Bonn (Germany), 20-21 June 2000.

27 Surfactants and Cosmetics, M. Hagen, FNR, Germany, in: Chemical-Technical Utilisation of Vegetable Oils - Final Conference proceedings, Bonn (Germany), 20-21 June 2000.


29 Oleochemical Feedstocks Face Downward Pricing, Jennifer Markarian, Chemical Market Reporter, 22 January 2001.

30 Pocketbook of Palm Oil Uses, Palm Oil Research Institute of Malaysia (PORIM), Kuala Lumpur, March 1997; The World of Edible Oils, H.D. Glaudemans, M.M.J. Timmermans and H. Rijkse, Rabobank Food and Agriculture Research Department, Utrecht, August 1998; Annual Report 2000, Sipef NV, Schoten, May 2001.



33 Oil World Annual 2000, ISTA Mielke, Hamburg, May 2000; Oil World Annual 2003, ISTA Mielke, Hamburg, May 2003.



36 Palm oil production to dip this year, The Jakarta Post, Jakarta, 30 March 2001.



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39 Oil World Annual 2000, ISTA Mielke, Hamburg, May 2000; Oil World Annual 2003, ISTA Mielke, Hamburg,

May 2003.

40 The World Markets for Oilseeds and Oilseed Products, R. Craemer, LMC International, Oxford, United Kingdom, in: Chemical-Technical Utilisation of Vegetable Oils - Final Conference proceedings, Bonn (Germany), 20-21 June 2000.


42 Annual Report 2000, Sipef NV, Schoten, May 2001.

43 The Hesitant Boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change, Anne Casson, CIFOR Occasional Paper No. 29, Centre for International Forestry Research, Jakarta, June 2000.




47 The Hesitant Boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change, Anne Casson, CIFOR Occasional Paper No. 29, Centre for International Forestry Research, Jakarta, June 2000; CPO industry still open for new investment, Indonesian Commercial Newsletter, Jakarta, 11 March 2003.


49 Palm oil push by Indonesia: Lower costs are giving growers the chance to catch Malaysia, James Kynge and Sander Thoenes, Financial Times, London, 8 October 1997; The Hesitant Boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change, Anne Casson, CIFOR Occasional Paper No. 29, Centre for International Forestry Research, Jakarta, June 2000.

50 CPO industry still open for new investment, Indonesian Commercial Newsletter, Jakarta, 11 March 2003.

51 Funding Forest Destruction - The Involvement of Dutch Banks in the Financing of Oil Palm Plantations in Indonesia, Research commissioned by Greenpeace Netherlands, Eric Wakker, Jan Willem van Gelder and Telapak Sawit Research Team, AIDEnvironment, Amsterdam, March 2000.


53 The Hesitant Boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change, Anne Casson, CIFOR Occasional Paper No. 29, Centre for International Forestry Research, Jakarta, June 2000; Indonesian Directorate General of Estate Crop Production, cited in: Oil Palm, Soybeans & Critical Habitat Loss, Anne Casson, Internal report for WWF International, 25 August 2003.



56 CPO exports to increase to 6.2m tons, Adianto P. Simamora, The Jakarta Post, Jakarta, 23 December 2002.

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57 Commodity Analysis Palm Oil, Oil World, Hamburg, March 2003.


59 CPO producers convene to resolve problems, Adianto P. Simamora, The Jakarta Post, Jakarta, 21 December 2002; CPO industry still open for new investment, Indonesian Commercial Newsletter, Jakarta, 11 March 2003; Devisa Ekspor CPO Diprediksi Naik 12%, Bisnis Indonesia, Jakarta, 13 May 2003.

60 Oil Palm in Indonesia: Its Role in Forest Conversion and the Fires of 1997/98, L.Potter and J.Lee, Report for WWF Indonesia, Jakarta, 1998; CPO industry still open for new investment, Indonesian Commercial Newsletter, Jakarta, 11 March 2003.

61 Financing of the Indonesian oil palm sector - A research paper prepared for WWF Asia & Pacific Forest Program and WWF Indonesia, Jan Willem van Gelder, Profundo, July 2003.

62 Financing of the Indonesian oil palm sector - A research paper prepared for WWF Asia & Pacific Forest Program and WWF Indonesia, Jan Willem van Gelder, Profundo, July 2003.


64 Website OANDA (www.oanda.com), Viewed in June 2003.


66 Curb measure on CPO export explained, The Jakarta Post, Jakarta, 19 December 1997; Indonesian Palm Oil Sector, M. Sutedja, ABN Amro Hoare Govett, London, 10 July 1998; Government slashes CPO export tax to 10 percent, The Jakarta Post, Jakarta, 3 July 1999; Govt mulls raising export tax on crude palm oil, The Jakarta Post, Jakarta, 16 March 2001; CPO industry still open for new investment, Indonesian Commercial Newsletter, Jakarta, 11 March 2003.


68 Land for Oil Palm Plantations Limited - New Investors Required to Build Processing Plant, Indonesian Commercial Newsletter, Jakarta, 25 May 1999; The Hesitant Boom: Indonesia’s oil palm sub-sector in an era of economic crisis and political change, Anne Casson, CIFOR Occasional Paper No. 29, Centre for International Forestry Research, Jakarta, June 2000.


70 Oil palm plantations: Doing more harm than good?, Charlie Pye-Smith, The Jakarta Post, Jakarta, 6 February 2001.


72 Milieudefensie en Greenpeace boeken gedeeltelijk succes bij banken: Geen geld meer voor vernietiging tropisch regenwoud, Press Release of Milieudefensie and Greenpeace, Amsterdam, 31 October 2001.


74 Indonesia licenses 74 firms to open palm oil plantations, Antara, Jakarta, 28 February 2003; 74 companies to build oil palm plantations worth Rp 17.3 trillion, Indonesian Commercial Newsletter, 25 March 2003.

75 Indonesia Builds Palm Mills On Build,Op,Transfer Basis, Denny Kurien, Dow Jones Newswires, Jakarta, 15 July 2002; S Sumatra Needs Companies That Would Process CPO, Antara, Jakarta, 7 January 2003.

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76 Oil World Annual 2000, ISTA Mielke, Hamburg, May 2000; Oil World Annual 2003, ISTA Mielke, Hamburg,

May 2003.



79 Financing of the Indonesian oil palm sector - A research paper prepared for WWF Asia & Pacific Forest Program and WWF Indonesia, Jan Willem van Gelder, Profundo, July 2003; Annual Report 2002, PPB Group Berhad, Kuala Lumpur, March 2003; Company profile, PT Musim Mas, Jakarta, June 2003; Website Wilmar Holdings (www.wilmarco.com), Viewed in December 2003; Website Dutapalma Nusantara (www.dutapalma.co.id), Viewed in December 2003; Website Cisadane Raya Chemicals (www.cisadane.com), Viewed in December 2003; Website Pacific Rim Palm Oil (www.prpol.com), Viewed in January 2004.

80 Astra Agro Lestari Issues Bonds For Expansion, Indonesian Commercial Newsletter, Jakarta, 14 March 2000.

81 Annual Report 2000, PT Astra Agro Lestari Tbk., Jakarta, April 2001; Anonymous source, April 2003.

82 Brochure Cargill Indonesia, Cargill Inc., Minneapolis, January 2003.

83 Anonymous source, April 2003.

84 Prospectus for the IPO of Agri-Resources Ltd., Singapore, 2 July 1999;

85 Annual Report 2000, PT Astra Agro Lestari Tbk., Jakarta, April 2001.

86 Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, May 2003.

87 Sipef boekte in eerste vier maanden winst van 1,5 miljoen euro; door uitzonderlijke verkopen, De Financieel-Economische Tijd, Antwerp, 14 June 2001.

88 Kulim (Malaysia) Bhd - Company Report, Y.H. Wong, Merrill Lynch Capital Markets, 13 October 1997; PNG palm oil company's float on course despite low prices, The Public Ledger, Tunbridge Wells, 18 June 1999; Politics has scuppered Kulim's plan to sell off New Britain Palm Oil, Malcolm Surry, Asian Business, 1 August 1999.

89 Website Pacific Rim Palm Oil (www.prpol.com), Viewed in January 2004.


91 Website Paul Tiefenbacher (www.paul-tiefenbacher.de), Viewed in December 2003.

92 Annual Report 2002, Golden Hope Plantations Bhd., Kuala Lumpur, April 2003.

93 Delivering Quality And Food Safety To The European Palm Oil Consumer - Presentation given at SCI Oils & Fats Group Conference "Contribution of Palm Oil to the Food Industry", Ralph Timms (Britannia Food Ingredients Ltd.), Goole, 3 June 2003.

94 Website EPA Management (www.epa.com.my), Viewed in December 2003.

95 Website Guthrie Symington (www.gsymconnect.com), Viewed in August 2003.


97 Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2003.

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98 Annual Report 2002, PPB Group Berhad, Kuala Lumpur, March 2003; Website PPB Group

(www.ppbgroup.com), Viewed in December 2003.


100 London Sumatra assures tainted CPO not for human consumption, The Jakarta Post, Jakarta, 15 December 1999.

101 Annual Report 1996, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1997; Annual Report 1997, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1998; Annual Report 1998, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1999; Annual Report 1999, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2000; Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2003.

102 Annual Report 1996, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1997; Annual Report 1997, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1998; Annual Report 1998, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1999; Annual Report 1999, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2000; Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2003.

103 Kuok buys 47% of Lonsum of Indonesia, The Star, Kuala Lumpur, 6 January 2004.


105 Website Indoham (www.indoham.com), Viewed in December 2003.



108 Edible Oils & Fats Group, Indonesian Bank Restructuring Agency, Jakarta, 29 September 2003.

109 Indofood to boost food business with expansion, The Jakarta Post, Jakarta, 3 March 1997; Annual Report 1997, Indofood Sukses Makmur, Jakarta, May 1998; Annual Report 2000, Indofood Sukses Makmur, Jakarta, May 2001; Annual Report 2001, Indofood Sukses Makmur, Jakarta, May 2002; Anonymous source, April 2003.

110 Annual report 2002, PT Tunas Baru Lampung Tbk., Jakarta, April 2003.

111 Annual Report 2000, Golden Agri-Resources Ltd., Singapore, May 2001.

112 Prospectus for the IPO of Agri-Resources Ltd., Singapore, 2 July 1999; Annual report 2000, PT SMART Tbk., Jakarta, April 2001; Anonymous source, April 2003.

113 Palm oil nepotism adds fuel to disaster, George J. Aditjondro, Australian Financial Review, Sydney, 13 October 1997.

114 Project number 20348: Wilmar Trading - Summary of Project Information (SPI), International Finance Corporation, Washington, 6 November 2003.

115 Website Wilmar Holdings (www.wilmarco.com), Viewed in August 2003.


117 Annual report 2000, PT Astra Agro Lestari Tbk., Jakarta, April 2001.


119 Annual Report 2000, Indofood Sukses Makmur, Jakarta, May 2001.

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120 Kulim (Malaysia) Bhd - Company Report, Y.H. Wong, Merrill Lynch Capital Markets, 13 October 1997.



123 Website Socfin (www.socfin.be), Viewed in December 2003.

124 Website Cahaya Kalbar (www.cahayakalbar.com), Viewed in December 2003.

125 Website Dutapalma Nusantara (www.dutapalma.co.id), Viewed in December 2003.






131 A Profile Of Indonesia's Cooking Oil Industry, Asia Pulse Analysts, Jakarta, April 1999.

132 A Profile Of Indonesia's Cooking Oil Industry, Asia Pulse Analysts, Jakarta, April 1999.

133 Website Bakrie Sumatera Plantations (www.bakriesumatera.com), viewed in December 2003.

134 Website Socfin (www.socfin.be), Viewed in December 2003.


136 Website Cisadane Raya Chemicals (www.cisadane.com), Viewed in December 2003.

137 Website Dutapalma Nusantara (www.dutapalma.co.id), Viewed in December 2003.

138 Company profile, PT Musim Mas, Jakarta, June 2003.

139 Annual report 2000, PT Astra Agro Lestari Tbk., Jakarta, April 2001.


141 Website Musim Mas (www.musimmas.com), Viewed in December 2003.



144 Website Asian Agri (www.asianagri.com), Viewed in March 2003.

145 Website Intiboga Sejahtera (www.intiboga.com), Viewed in December 2003.


147 Tunas Baru Lampung To Go Public Next Year, The Jakarta Post, Jakarta, 27 November 1999; Good Prospects At Home And Abroad, Ruddy K. Gobel, Indonesian Business, Jakarta, March 2000.

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150 Annual Report 2002, PT Cahaya Kalbar Tbk., Jakarta, April 2003.

151 Edible Oils & Fats Group, Indonesian Bank Restructuring Agency, Jakarta, 29 September 2003; Website Intiboga Sejahtera (www.intiboga.com), Viewed in December 2003.

152 Annual Report 2000, PT Indofood Sukses Makmur Tbk., Jakarta, May 2001; AFP Enters Into Strategic Partnership with Indofood for its Palm Oil Businesses in Indonesia, Press Release Golden Agri-Resources Ltd., Singapore, 10 May 2001; Annual Report 2001, PT Indofood Sukses Makmur Tbk., Jakarta, May 2002; Indofood 2002 Financial Results, Press Release PT Indofood Sukses Makmur, Jakarta, 24 March 2003.

153 Website SMART (www.smart-tbk.com), Viewed in December 2003.


155 Oleochemical Production Up 8% Annually, Indonesian Commercial Newsletter, Jakarta, 8 October 2002.

156 Export market still wide open for oleochemicals, Indonesian Commercial Newsletter, Jakarta, 14 January 2003.

157 Website Flora Sawita Chemindo (www.florasawita.com), Viewed in December 2003.

158 Export market still wide open for oleochemicals, Indonesian Commercial Newsletter, Jakarta, 14 January 2003; Website Cisadane Raya Chemicals (www.cisadane.com), Viewed in December 2003.

159 Export market still wide open for oleochemicals, Indonesian Commercial Newsletter, Jakarta, 14 January 2003; Environmental Review Summary Project number 11696 / Ecogreen, International Finance Corporation, Washington, 26 September 2003; Website Ecogreen Oleochemicals (www.ecogreenoleo.net), Viewed in December 2003.

160 Holdiko Sells Salim Oleochemicals Group For USD131 Million To a Local Consortium, Press release PT Holdiko Perkasa, Jakarta, 21 November 2000; IBRA Sells a Controlling Stake In Salim's Oleochemicals Group, Jay Solomon, Wall Street Journal, New York, 22 November 2000.

161 Environmental Review Summary Project number 11696 / Ecogreen, International Finance Corporation, Washington, 26 September 2003.

162 PT Sumi Asih Manufacturing Profile, PT Sumi Asih, Jakarta, 8 August 2002; Oleochemical Production Up 8% Annually, Indonesian Commercial Newsletter, Jakarta, 8 October 2002; Website Sumi Asih (www.sumiasih.com), Viewed in December 2003.

163 Oleochemical Production Up 8% Annually, Indonesian Commercial Newsletter, Jakarta, 8 October 2002.

164 Website Derifats Chemicals (www.green-n-natural.com/sumiasih/), Viewed in December 2003.

165 Website Corichem (www.corichem.de), Viewed in December 2003.


167 Website Corichem (www.corichem.de), Viewed in December 2003.

168 Export market still wide open for oleochemicals, Indonesian Commercial Newsletter, Jakarta, 14 January 2003; Website Sinar Oleochemical International (www.soci.co.id), Viewed in December 2003.

169 Website Port of Cirebon (www.cirebonport.co.id), Viewed in December 2003.

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171 Not All Of Indonesia's CPO Exports To Rotterdam Stopped, Antara, Jakarta, 7 December 1999; 1,400 tons of CPO from Deli Tama tanks to be tendered, The Jakarta Post, Jakarta, 14 December 1999; The Achilles Heel Of The Giant, Teguh K. Prasetyo, Indonesian Business, Jakarta, January 2000.

172 Website Belawan Tanki Indonesia (www.bti.co.id), Viewed in December 2003.

173 London Sumatra assures tainted CPO not for human consumption, The Jakarta Post, Jakarta, 15 December 1999.



176 Comparing Table 19 with Table 15 shows that Indonesian palm oil exports to the EU are usually higher than EU palm oil imports from Indonesia. This difference probably is caused by transit of Indonesian palm oil via European ports to non-EU countries.

177 Not All Of Indonesia's CPO Exports To Rotterdam Stopped, Antara, Jakarta, 7 December 1999; The Achilles Heel Of The Giant, Teguh K. Prasetyo, Indonesian Business, Jakarta, January 2000.

178 Nieuwsflits Handelspolitiek No. 30, Frans Köster, Productschap Margarine, Vetten en Oliën, Rijswijk, 11 December 2001.

179 Nieuwsflits Handelspolitiek No. 30, Frans Köster, Productschap Margarine, Vetten en Oliën, Rijswijk, 11 December 2001.










189 Regulation (EEC) No 4064/89 Merger Procedure - Case No IV/M.1126 - Cargill / Vandemoortele, European Commission, Brussels, 20 July 1998.

190 Regulation (EEC) No 4064/89 Merger Procedure - Case No IV/M.1227 - Cargill / Vandemoortele JV, European Commission, Brussels, 20 July 1998.

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191 Website IMACE (www.imace.org), Viewed in September 2003.

192 Edible Fats and Oils in relation to sugar confectionery, chocolate and fine bakery wares, IOCCC, Brussels, August 2001.

193 Chocolate box closed at last, Eurofood, 6 July 2000.

194 Chocolate Directive - Background Information, Fediol, Brussels 2001.

195 Chocolate Directive - Background Information, Fediol, Brussels 2001.

196 Chocolate makers keep recipes, Tim Probert, The Public Ledger, Tunbridge Wells, 11 August 2003.

197 Chocolate makers keep recipes, Tim Probert, The Public Ledger, Tunbridge Wells, 11 August 2003.

198 Palm Oil, Kurt Berger, Website Britannia Food (www.britanniafood.com), Viewed in August 2003.



201 Website Productschap Margarine, Vetten en Oliën (www.mvo.nl), Viewed in September 2003.






207 Advies van de Bestuurskamer van de Sociaal-Economische Raad tot instelling van een productschap op het gebied van de bereiding van, been verwerking van en de handel in vetten en oliën, Sociaal-Economische Raad (SER), The Hague, 2 October 2002.

208 Soya & Oilseed Bluebook 2004, Soyatech Inc., Bar Harbor, Oktober 2003.

209 Soya & Oilseed Bluebook 2004, Soyatech Inc., Bar Harbor, Oktober 2003; Website Barentz (www.barentz.com), Viewed in January 2004.

210 Website Cefetra (www.cefetra.nl), Viewed in January 2004.

211 Website Daarnhouwer & Co. B.V. (www.daarnhouwer.nl), Viewed in September 2003.

212 Nigeria ups palmkernel cake exports, Yemi Adeleke, The Public Ledger, Tunbridge Wells, 9 May 1997.

213 Website Dutch Organic International Trade (www.organic.nl), Viewed in September 2003.

214 Website Fontannaz Commodities (www.fontannaz.com), Viewed in August 2003.

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215 Bunge opens trading office in Australia, Gurdip Singh, The Public Ledger, 29 June 2001.

216 Website L.Hendrix (www.l-hendrix.nl), Viewed in September 2003.

217 Website EPA Management (www.epa.com.my), Viewed in December 2003.

218 Website Nidera Handelscompagnie (www.nidera.nl), Viewed in Ocotber 2003.

219 Otter Group fuseert met Apollo Group, De Molenaar, December 2001; Website Otter Groep (www.otter.nl), Viewed in October 2003.

220 Website Tefco (www.tefco.nl), Viewed in December 2003.

221 Website Tradepoint Logistics (www.tradepointbv.com), Viewed in December 2003.

222 Website Tradin Organic (www.tradinorganic.com), Viewed in December 2003.


224 Bladen: El Niño en de handel, Het Financieele Dagblad, Amsterdam, 3 March 1998.


226 Website Koole (www.koole.com), Viewed in September 2003.

227 Koole purchases 'edible' terminals from Pakhoed, Press Release Royal Pakhoed, Vlaardingen, 7 July 1999; Case No.IV/M.1621 Pakhoed/Van Ommeren (II), European Commission, Brussels, 10 September 1999.

228 Website ITC Holland (www.itcholland.com), Viewed in October 2003.

229 Website Port of Rotterdam (www.portofrotterdam.com), Viewed in October 2003.

230 Website Pieter Bon (www.pieterbon.nl), Viewed in November 2003.

231 Corporate Brochure, Vopak Vegoil Logistics, Vlaardingen, March 2003; Vopak Vlaardingen expands stainless steel tankage, Leaflet Vopak Vegoil Logistics, Vlaardingen, July 2003.

232 Case No.IV/M.1621 Pakhoed/Van Ommeren (II), European Commission, Brussels, 10 September 1999.

233 Website Vopak Vegoil Logistics (vegoil.vopak.com), Viewed in September 2003.


235 Advies van de Bestuurskamer van de Sociaal-Economische Raad tot instelling van een productschap op het gebied van de bereiding van, been verwerking van en de handel in vetten en oliën, Sociaal-Economische Raad (SER), The Hague, 2 October 2002.

236 Cargill Koerier, Amsterdam, March 1999, cited in: Duistere Machten - Cargill en andere agro-concerns bedreigen de boeren, de wereld, ons eten, Jan Paul Smit, Agri & Cultuur, Amsterdam, 2000.

237 Case No COMP/M.2693 - ADM / ACTI, European Commission, Brussels, 11 February 2002.

238 Various issues, Cargill Koerier, Cargill, Amsterdam, 1998/99, cited in: Duistere Machten - Cargill en andere agro-concerns bedreigen de boeren, de wereld, ons eten, Jan Paul Smit, Agri & Cultuur, Amsterdam, 2000.

239 Annual Report 2002, Karlshamns AB, Karlshamn, April 2003.

240 Karlshamns responds to environmental fears, Foodnavigator.com, 14 January 2003.

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242 Unilever sheds unit for $214M, Nicola Hobday, The Deal, London, 30 August 2002; Malaysian buys in Europe hit palm oil liquidity, Eric Onstad, Reuters, Amsterdam, 6 September 2002.

243 Loders Croklaan to build Europe’s largest palm oil processing plant in Rotterdam, Press Release Loders Croklaan, Wormerveer, 15 January 2004.

244 Malaysian Group grabs Unilever's fats and oils, Chemical Market Reporter, 9 September 2002.

245 Golden Hope and IOI European acquisitions termed 'well strategised' by analysts, Asia Intelligence Wire, 10 September 2002.

246 Website Soctek Nederland (www.soctek.nl), Viewed in October 2003.

247 Nestle, Cargill also keen on Unilever refinery, Zaidi Isham Ismail, Business Times, Kuala Lumpur, 20 November 2001; Acquistion Of The Business Of Unimills BV, Press Release Golden Hope Plantations Bhd., Kuala Lumpur, 9 January 2002; Golden Hope buys Dutch refinery from Unilever, Ayo Akinfe, The Public Ledger, Tunbridge Wells, 11 January 2002; Annual Report 2002, Golden Hope Plantations Bhd., Kuala Lumpur, April 2003.

248 Unimills vestigt hoop helemaal op Golden Hope, De Dordtenaar, Dordrecht, 22 November 2001.

249 Acquistion Of The Business Of Unimills BV, Press Release Golden Hope Plantations Bhd., Kuala Lumpur, 9 January 2002.

250 Website Zaanlandse Olieraffinaderij (www.dezor.com), Viewed in January 2004.

251 Market Profile: Netherlands - Fats And Spreads, Datamonitor, New York, 4 November 2002.


253 Advies van de Bestuurskamer van de Sociaal-Economische Raad tot instelling van een productschap op het gebied van de bereiding van, been verwerking van en de handel in vetten en oliën, Sociaal-Economische Raad (SER), The Hague, 2 October 2002; Website Productschap Margarine, Vetten en Oliën (www.mvo.nl), Viewed in September 2003.

254 Productschap Biedt Hulp Aan Palmolie-Industrie, Het Financieele Dagblad, Amsterdam, 23 November 1999.

255 Food For Thought Database (www.fft.com), Viewed in September 2003.

256 Website Levo Produktenmaatschappij (www.levo.nl), Viewed in October 2003.

257 Levo B.V. introduceert nieuwe universele bakolie: Grenada Gold Class A, Press release Levo Produktenmaatschappij, Franeker, 2 December 2003.

258 Website Raisio Group (www.raisiogroup.com), Viewed in October 2003.


260 Website Remia (www.remia.nl), Viewed in October 2003.


262 Website Billy’s Farm (www.billysfarm.nl), Viewed in October 2003.

263 Smilde Zoekt Naar Nieuw Evenwicht - Consumentenprodukten Meer Gelijk Op Met Vetsmelten, M. Smits, Het Financieele Dagblad, Amsterdam, 2 February 1996; Jaarbericht 1998 Koninklijke Smilde B.V., Heerenveen, April 1999; Website Romi Smilfood (www.smilfood.nl), Viewed in December 2003.

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264 Database Grootverbruik Produkt Informatie, Barneveld, December 2003.

265 Website Romi Smilfood (www.smilfood.nl), Viewed in December 2003; Website Gezond Frituren (www.gezondfrituren.nl), Viewed in December 2003.

266 Website Unilever Nederland (www.unilever.nl), Viewed in October 2003.


268 Palm Oil - A sustainable future, Unilever, Rotterdam/London, 1 February 2002.





273 Indofood to boost food business with expansion, The Jakarta Post, Jakarta, 3 March 1997.

274 PNG palm oil company's float on course despite low prices, The Public Ledger, Tunbridge Wells, 18 June 1999; Politics has scuppered Kulim's plan to sell off New Britain Palm Oil, Malcolm Surry, Asian Business, 1 August 1999.

275 Website Vandemoortele (www.vandemoortele.com), Viewed in October 2003.



278 Zaaknummer 2033/Van Dijk - Brinkers: Besluit van de directeur-generaal van de Nederlandse mededingingsautoriteit als bedoeld in artikel 37, eerste lid, van de Mededingingswet, NMA, The Hague, 13 September 2000

279 Zaaknummer 2047/Van Dijk - Van den Bergh: Besluit van de directeur-generaal van de Nederlandse mededingingsautoriteit als bedoeld in artikel 37, eerste lid, van de Mededingingswet, NMA, The Hague, 19 September 2000.


281 Website H.J. Heinz Nederland (www.heinz.nl), Viewed in December 2003.


283 Website Masterfoods (www.masterfoods.nl), Viewed in December 2003.

284 Website Nestlé Nederland (www.nestle.nl), Viewed in December 2003.



287 Website Remia (www.remia.nl), Viewed in October 2003.

288 Website Struik (www.struik.nl), Viewed in December 2003.

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289 Website Unifine (www.unifine.com), Viewed in December 2003.


291 Zaaknummer 2033/Van Dijk - Brinkers: Besluit van de directeur-generaal van de Nederlandse mededingingsautoriteit als bedoeld in artikel 37, eerste lid, van de Mededingingswet, NMA, The Hague, 13 September 2000

292 Website Verstegen (www.verstegen.nl), Viewed in December 2003.

293 Website Algemene Olie Handel (www.aoh.nl), Viewed in October 2003.

294 Website Cebag (www.cebag.com), Viewed in October 2003.

295 Website De Oliehoorn (www.oliehoorn.nl), Viewed in October 2003.

296 Website Elburg Global (www.elburgglobal.nl), Viewed in October 2003.

297 Website Good-Fry International (www.goodfry.com), Viewed in September 2003.

298 Website Spack (www.spack.nl), Viewed in November 2003.

299 Website Vereenigde Oliefabrieken (www.vo.nl), Viewed in October 2003.

300 De Snacks- en Zoetwarenmarkt in Nederland 2000-2002, Studiecentrum Snacks en Zoetwaren, Zeist, March 2003.

301 Market Profile: Netherlands - Sweet Biscuits, Datamonitor, New York, 28 October 2002.

302 Website Haust (www.haust.nl), Viewed in December 2003.

303 Website Danone (www.danone.com), Viewed in December 2003.

304 Website LU, General Biscuits Nederland (www.lu.nl), Viewed in December 2003.


306 Website Verkade (www.verkade.nl), Viewed in December 2003; Website United Biscuits (www.unitedbiscuits.com), Viewed in December 2003.


308 Website Bake Five (www.bakefive.nl), Viewed in December 2003.

309 Website Bakkersland (www.bakkersland.nl), Viewed in December 2003.

310 Website Délifrance (www.delifrance.com), Viewed in December 2003; Website Délifrance Nederland (www.delifrance.nl), Viewed in December 2003

311 Website Kamps (www.kamps.de), Viewed in December 2003; Website Kamps Nederland (www.qualitybakers.nl), Viewed in December 2003.

312 Website Pruvé (www.pruve.nl), Viewed in December 2003.

313 Website Top Bakkers (www.topbakkers.nl), Viewed in December 2003.

314 Website Unipro Professional Bakery (www.uniprobakery.com), Viewed in December 2003.

315 Website Vandemoortele (www.vandemoortelebakeryproducts.com), Viewed in December 2003.

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316 De Snacks- en Zoetwarenmarkt in Nederland 2000-2002, Studiecentrum Snacks en Zoetwaren, Zeist,

March 2003.

317 Market Profile: Netherlands - Chocolate Confectionery, Datamonitor, New York, 21 October 2002.


319 Market Profile: Netherlands - Confectionery, Datamonitor, New York, 21 October 2002.

320 Market Profile: Netherlands - Ice Cream, Datamonitor, New York, 7 October 2002.

321 Baronie De Heer (www.baronie.com), Viewed in December 2003.

322 Website Delicia (www.delicia.nl), Viewed in December 2003.

323 Website Droste (www.droste.nl), Viewed in December 2003.

324 Website Ferrero (www.ferrero.it), Viewed in December 2003.

325 Website H.J. Heinz Nederland (www.heinz.nl), Viewed in December 2003.


327 Website Kraft Foods Nederland (www.milka.nl), Viewed in December 2003.



330 Website Mars (www.mars.nl), Viewed in December 2003.





335 Website Steenland (www.steenland.nl), Viewed in December 2003.

336 Market Profile: Netherlands - Chocolate Confectionery, Datamonitor, New York, 21 October 2002; Website Verkade (www.verkade.nl), Viewed in December 2003.

337 Website Perfetti Van Melle (www.perfettivanmelle.nl), Viewed in December 2003.


339 Website RBV-Leaf (www.rbvleaf.com), Viewed in December 2003.


341 Website Haägen-Dazs (www.haagen-dazs.co.uk), Viewed in December 2003.


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345 Website Mars (www.mars.nl), Viewed in December 2003.






351 Smiths Probeert Het Nog Eens Met Vetarme Chips, Het Financieele Dagblad, Amsterdam, 28 January 1999; Market Profile: Netherlands - Potato Chips, Datamonitor, New York, 28 October 2002.

352 Market Profile: Netherlands - Savoury Snacks, Datamonitor, New York, 28 October 2002.

353 Market Profile: Netherlands - Snack Nuts, Datamonitor, New York, 28 October 2002; Website Duyvis (www.duyvis.nl), Viewed in December 2003.

354 Website Procter & Gamble Western Europe (www.eu.pg.com), Viewed in December 2003.

355 Website Smiths Food (www.smiths.nl), Viewed in December 2003.

356 Market Profile: Netherlands - Savoury Snacks, Datamonitor, New York, 28 October 2002.

357 ADM Food Oils Group Named Frito-Lay North America 2001 Supplier of the Year, Press Release ADM, Decatur (Illinois), 25 March 2002.

358 Website Swartberg (www.swartberg.com), Viewed in December 2003.

359 Market Profile: Netherlands - Snack Nuts, Datamonitor, New York, 28 October 2002.

360 Website The Nut Company (www.thenutcompany.com), Viewed in December 2003.

361 Market Profile: Netherlands - Snack Nuts, Datamonitor, New York, 28 October 2002.

362 Website Haust (www.haust.nl), Viewed in December 2003.

363 Market Profile: Netherlands - Savoury Biscuits, Datamonitor, New York, 28 October 2002.

364 Website LU, General Biscuits Nederland (www.lu.nl), Viewed in December 2003.





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369 Website Van der Meulen (www.meulenholland.com), Viewed in December 2003.


371 Website Bakker Lekkerkerk (www.bakker-lekkerkerk.nl), Viewed in January 2004; Website Perkins Foods (www.perkinsfoods.co.uk), Viewed in January 2004.

372 Website Beckers Nederland (www.beckers.nl), Viewed in December 2003.

373 Website Boekos Food Group (www.boekos.nl), Viewed in December 2003.

374 Website Mad Snacks (www.mad.nl), Viewed in December 2003.

375 Website Buitenhuis Snacks (www.buitenhuis.nl), Viewed in December 2003.

376 Cold Food B.V., het "Premium Snackhuis" achter de merken Kwekkeboom en Van Dobben zelfstandig verder, Press release Cold Food, Oostzaan, 28 October 2003.


378 Website Encko (www.encko.com), Viewed in January 2004.



381 Website Zwanenberg Food Group (www.zwanenberg.nl), Viewed in December 2003.

382 Website Aviko (www.aviko.com), Viewed in December 2003.

383 Website Boots Frites (www.bootsfrites.nl), Viewed in December 2003.

384 Website CêlaVíta (www.celavita.nl), Viewed in December 2003.

385 Website De Fritesspecialist (www.defritesspecialist.nl), Viewed in December 2003.

386 Website Farm Frites (www.farmfrites.nl), Viewed in December 2003.

387 Website Lamb Weston / Meijer (www.lambwestonmeijer.nl), Viewed in December 2003.

388 Website McCain Foods Holland (www.mccain.nl), Viewed in December 2003.

389 Familieconcern McCain opent deur naar het marktdenken, Pieter Couwenbergh and Rob Huisman, Het Financieele Dagblad, Amsterdam, 24 September 2001.

390 Website Geest (www.geest.co.uk), Viewed in January 2004.

391 Website FanoFineFood (www.fanofinefood.nl), Viewed in January 2004.

392 Website Struik (www.struik.nl), Viewed in December 2003.

393 Website Uniq (www.uniq.com), Viewed in January 2004.


395 Website Friesche Vlag (www.frieschevlag.nl), Viewed in December 2003.

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399 Colipa Statistics Working Group, Brussels, 31 July 2003.

400 Website Uniqema (www.uniqema.com), Viewed in October 2003.

401 Website Chempri (www.chempri.com), Viewed in December 2003.

402 Website IMCD Group (www.imcdgroup.com), Viewed in October 2003.

403 Website Jan Dekker (www.jandekker.com), Viewed in September 2003.

404 Website Beiersdorf Nederland (www.beiersdorf.nl), Viewed in December 2003.

405 Website Colgate-Palmolive Nederland (www.colgate.nl), Viewed in December 2003.

406 Website Esteé Lauder (www.elcompanies.com), Viewed in December 2003.

407 Website Henkel Nederland (www.henkel.nl), Viewed in December 2003.

408 Website L’Oréal Nederland (www.loreal.nl), Viewed in December 2003.


410 Website Groupe LVMH (www.lvmh.com), Viewed in December 2003.

411 Website Procter & Gamble Europe (www.eu.pg.com), Viewed in December 2003.

412 Website Sara Lee Household & Body Care (www.saralee-hbc.nl), Viewed in December 2003.

413 Personal information by Ad Jespers, Sara Lee Household & Body Care, December 2003.

414 Website Colgate-Palmolive Nederland (www.colgate.nl), Viewed in December 2003.

415 Website Henkel Nederland (www.henkel.nl), Viewed in December 2003.


417 Website Procter & Gamble Europe (www.eu.pg.com), Viewed in December 2003.

418 Website Sara Lee Household & Body Care (www.saralee-hbc.nl), Viewed in December 2003.

419 Actieplan Kwaliteitsborging palmolie voor diervoederdoeleinden, Productschap Diervoeder, The Hague, 22 October 2002.

420 Website Productschap Diervoeder (www.pdv.nl), Viewed in September 2003.

421 Compound Feed Production (1989-2002), European Feed Manufacturers Federation (FEFAC), Brussels, 4 April 2003; Website Productschap Diervoeder (www.pdv.nl), Viewed in September 2003.

422 "Voer tot nadenken" - Veiligheidsrisico's diervoederketens, Report on behalf of the Dutch parliament, Research voor Beleid / Q-Point, Leiden, 5 September 2003.

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423 BCA's Mysterious Suitors, Sadanand Dhume, Far Eastern Economic Review, Hong Kong, 12 July 2001;

Website ABN AMRO Bank (www.abnamro.com), Viewed in May 2003.

424 Forestry & Tree Plantations - ABN AMRO Risk Policies, ABN AMRO Bank, Amsterdam, 5 October 2001; Geen geld meer voor vernietiging tropisch regenwoud - Milieudefensie en Greenpeace boeken gedeeltelijk succes bij banken, Joint press release of Milieudefensie and Greenpeace Netherlands, Amsterdam, 31 October 2001.

425 Currency woes plague Indonesian equity deals, Euroweek, London, 24 October 1997; PT Astra Agro Lestari to offer 125.8m shares, The Jakarta Post, Jakarta, 29 October 1997; Astra Agro IPO boosted by dollar earnings link, Euroweek, London, 14 November 1997; Astra Agro hits oil slick, International Financing Review, London, 15 November 1997; PT AAL to sell shares, The Jakarta Post, Jakarta, 20 November 1997.

426 Agro Lestari to issue Rp 500 billion in bonds, The Jakarta Post, Jakarta, 25 January 2000; Capital Market: Astra Agro Lestari issues bonds for expansion, Indonesian Commercial Newsletter, Jakarta, 14 March 2000; Investor Bulletin, PT Astra Agro Lestari Tbk., Jakarta, August 2001.

427 Indonesian Bakrie, Major Creditors Agree Restructure Plan, Noel Fung, Dow Jones, Jakarta, 9 December 1999; Bakrie creditors approve $1.08 billion debt deal, The Jakarta Post, Jakarta, 29 November 2000; Bakrie’s Restructuring Debts Completed, Indonesian Business, Jakarta, 30 November 2000; Indonesia 's Bakrie, Garuda in landmark debt restructuring deals, Shoeb Kagda, Business Times, Singapore, 26 January 2001; Debt restructuring deal to earn Bakrie & Brothers Rp 4t, The Jakarta Post, Jakarta, 29 June 2001; Bakrie Brothers 1.086 bln usd debt restructuring seen effective Nov 28, AFX-Asia, Jakarta, 18 September 2001; Indonesia debt swap takes effect, Tom McCawley, Financial Times, London, 30 November 2001; Annual Report 2002, PT Bakrie Sumatera Plantations Tbk., Jakarta, April 2003.

428 Proposed acquisition of interests in plantation companies held by PT Holdiko Perkasa and PT Gemahripah Pertiwi, Announcement to the Kuala Lumpur Stock Exchange, Kumpulan Guthrie Berhad, Kuala Lumpur, 14 December 2000; Guthrie plans to refinance bridging loan, Michael Sun, New Straits Times, Singapore, 28 June 2001.

429 Guthrie plans to refinance bridging loan, Michael Sun, New Straits Times, Singapore, 28 June 2001; Guthrie to spend more on Indon land infrastructure, Mokhtar Hanafiah, The Star, Kuala Lumpur, 28 June 2001; Guthrie may have to rethink structure of bonds, Business Times, Ishun P. Ahmad, Kuala Lumpur, 4 October 2001; Kumpulan Guthrie Berhad's USD395 Million Serial Islamic Lease Sukuk Issue via First Global Sukuk Inc.; Announcement to the Kuala Lumpur Stock Exchange, Kumpulan Guthrie Berhad, Kuala Lumpur, 20 December 2001; Annual Report 2001, Kumpulan Guthrie Berhad, Kuala Lumpur, May 2002.

430 Napan Group acquires foreign plantation firm, The Jakarta Post, Jakarta, 17 November 1994; Information for shareholders, PT PP London Sumatra Indonesia Tbk., Jakarta, July 1996; Annual Report 1996, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1997; Loanware, Capital Data, London, May 2001.


432 London Sumatra to offer 38.8m shares, The Jakarta Post, Jakarta, 10 May 1996; International Financing Review, London, 1 June 1996; Lippo Karawachi reports 600% oversubscription of its IPO, The Jakarta Post, Jakarta, 15 June 1996; International Financing Review, London, 29 June 1996; Bondware, Capital Data, London, May 2001.

433 Annual Report 1997, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1998; Annual Report 1998, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1999; Annual Report 2002, LonSum Finance BV, Amsterdam, May 2003.

434 International Financing Review, London, 25 February 1995; Loanware, Capital Data, London, 10 April 1995; Information disclosure to the Jakarta and Surabaya Stock Exchanges, PT SMART Corporation, Jakarta, 13 April 1998; PT SMART Tbk. restructures US$45 million loan, Press Release PT SMART Tbk., Jakarta, 10 May 2000; Annual Report 2000, PT SMART Tbk., Jakarta, May 2001.

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435 Annual Report 1996, PT SMART Corporation Tbk., Jakarta, April 1997; Annual Report 2000, PT SMART

Tbk., Jakarta, May 2001.

436 Singapore Golden Agri Offers 568.6M Shrs IPO At US$0.638, Hasan Jafri, Dow Jones Newswires, Singapore, 2 July 1999; Agri set to list on Singapore in $400m IPO, Euroweek, London, 28 May 1999; Prospectus for the IPO of Agri-Resources Ltd., Singapore, 2 July 1999; AFP spin-off's IPO 18.4 times subscribed, Annette Pau, Business Times, Singapore, 9 July 1999; Golden Agri-Resources Ltd. Half Year Financial Statement for the six months ended 30 June 1999, Singapore, August 1999.

437 PT SMART Tbk. restructures US$45 million loan, Press Release PT SMART Tbk., Jakarta, 10 May 2000; Annual Report 2000, PT SMART Tbk., Jakarta, May 2001; Annual Report 2000, Golden Agri-Resources Ltd., Singapore, July 2001.

438 E-mail from Wouter Scheepens, Manager Corporate Communications ABN AMRO Bank, Amsterdam, 7 November 2001.

439 Loanware, Dealogic Ltd., London, October 2002.



442 Website Fortis Bank (www.fortisbank.com), Viewed in May 2003.

443 Geen geld meer voor vernietiging tropisch regenwoud - Milieudefensie en Greenpeace boeken gedeeltelijk succes bij banken, Joint press release of Milieudefensie and Greenpeace Netherlands, Amsterdam, 31 October 2001; Fortis onderschrijft alsnog eisen milieuorganisaties, Joint press release of Milieudefensie and Greenpeace Netherlands, Amsterdam, 31 October 2001; Branden aan papier - Nederlandse banken en de houtkap in Indonesië, Maarten Bakker, NRC Handelsblad, Rotterdam, 23 November 2001.

444 Fortis Provides $500m for Trade Financing, The Jakarta Post, Jakarta, 25 July 2000; Fortis and Jasindo sign financing scheme for Indonesian exports, Trade Finance, September 2000.

445 Annual Report 1997, Pan London Sumatra Finance BV, Amsterdam, July 1999; Website Handelsregister (www.kvk.nl), Viewed in May 2003.

446 Website Handelsregister (www.kvk.nl), Viewed in September 2001.

447 Annual Report 1999, Asian Agro International BV, Amsterdam, January 2001; Website Handelsregister (www.kvk.nl), Viewed in September 2001; Annual Report 2001, Asian Agro International BV, Amsterdam, October 2002.

448 Annual Report 2000, Purply Holding BV, Amsterdam, April 2001; Annual Report 2002, Purply Holding BV, Amsterdam, April 2003.

449 Annual Report 1999, Purimas international Finance BV, Rotterdam, December 2000; Website Handelsregister (www.kvk.nl), Viewed in May 2003.

450 Vroeger krediet op palmolie, nu op de plantage, Het Financieele Dagblad, Amsterdam, 24 October 1995; MeesPierson's specialist niche, Euromoney Project & Trade Finance, London, March 1996.

451 Website ING Group (www.inggroup.com), Viewed in May 2003; Website BHF Bank (www.bhf-bank.com), Viewed in May 2003.

452 Ook ING stopt financiering vernietiging tropisch regenwoud, Joint press release of Milieudefensie and Greenpeace Netherlands, Amsterdam, 13 February 2002.

453 Website ING Group (www.inggroup.com), Viewed in May 2003.

454 Annual Report 2002, PPB Oil Palms Berhad, Kuala Lumpur, April 2003.

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455 London Sumatra to offer 38.8m shares, The Jakarta Post, Jakarta, 10 May 1996; International Financing

Review, London, 1 June 1996; Lippo Karawachi reports 600% oversubscription of its IPO, The Jakarta Post, Jakarta, 15 June 1996; International Financing Review, London, 29 June 1996; Bondware, Capital Data, London, May 2001.

456 IFC Invests in Agribusiness Project in Indonesia, Press Release No. 97/45, IFC, Washington, 21 November 1996; Loanware, Capital Data, London, May 2001.

457 Indonesian Plantation Group Raises Term Loan in Singapore, Bernama, Kuala Lumpur, 17 April 1997; Asian Agri may set up int'l HQ here, Business Times, Singapore, 18 April 1997; Indon Plantation Group Raises 95 Million USD From Singapore Market, Antara, Jakarta, 19 April 1997; Raja Garuda Mas gets US$ 95 mln syndicated loan, Antara, Jakarta, 22 April 1997; Loanware, Capital Data, London, May 2001.

458 Annual Report 1997, PT Indofood Sukses Makmur Tbk., Jakarta, March 1998; Shareholders' meeting okays Indofood's Rp1.55t acquisition, The Jakarta Post, Jakarta, 4 April 1997; ING closes $100 million loan for Indofood, Rob Davies, FinanceAsia.com, 12 April 2002; Indofood to issue US$200m bond to refinance debt, The Jakarta Post, Jakarta, 29 May 2002.

459 HK First Pacific +3% To HK$6.85 After Indofood Deal, Dow Jones, Hong Kong, 22 June 1999; First Pacific to Pay $5b for Slice of Indofood, Hong Kong Standard, Hong Kong, 23 June 1999; First Pacific Completes Acquisition of 40% of Indofood, Press Release First Pacific Company Ltd., Hong Kong, 21 September 1999; First Pacific Completes Acquisition of 40 Pct of Indofood for 615 Mln USD, AFX, Jakarta, 23 September 1999; Annual Report 2000, First Pacific Company Ltd., Hong Kong, April 2001.

460 Most of Bond Proceeds for Expansion, The Jakarta Post, Jakarta, 31 May 2000; Indofood draws crowds with Rp1 trillion bond issue, Jim Regan, FinanceAsia, 2 June 2000; Website Bapepam (www.bapepam.go.id), Viewed in August 2001; Announcement to the Surabaya Stock Exchange, PT Indofood Sukses Makmur, Jakarta, 16 October 2001.

461 First Pacific's Indofood Unit to Acquire A Controlling Stake in Golden Agri-Resources, Press Release First Pacific Company Ltd., Hong Kong, 10 May 2001; Indofood's Conditional Put and Call Option Agreement on Golden Agri Resources Ltd. ("GAR"), Press Release PT Indofood Sukses Makmur Tbk., Jakarta, 11 August 2001.

462 Indofood gets $100 million loan, Jakarta Post, Jakarta, 10 April 2002; ING closes $100 million loan for Indofood, Rob Davies, FinanceAsia.com, 12 April 2002.

463 Announcement to the Surabaya Stock Exchange, PT Indofood Sukses Makmur, Jakarta, 26 March 2003.


465 Annual Report 1996, PT SMART Corporation Tbk., Jakarta, April 1997.



468 Indon palm oil producer taps S'pore for US$40m, Soh Tiang Keng, Business Times, Singapore, 25 June 1997.


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471 Website NIB Capital (www.nibcapital.com), Viewed in May 2003.



474 Lonsum gets $197m loan, The Jakarta Post, Jakarta, 17 May 1996; Annual Report 1996, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1997; Loanware, Capital Data, London, May 2001.



477 Website Rabobank (www.rabobank.com), Viewed in May 2003.

478 De Rabobank in de palmolieindustrie, Policy statement Rabobank Group, Utrecht, 7 October 2001; Geen geld meer voor vernietiging tropisch regenwoud - Milieudefensie en Greenpeace boeken gedeeltelijk succes bij banken, Joint press release of Milieudefensie and Greenpeace Netherlands, Amsterdam, 31 October 2001; Website Focus on Finance (www.focusonfinance.org), viewed November 2001.

479 Indonesian Trade Credit Facility, IFC Press Release, Washington, 20 May 1999.

480 Annual Report 2002, PT Astra Agro Lestari Tbk., Jakarta, April 2003.

481 Indonesian firm plans palm acquisitions, Asia Pulse, 12 June 2002; Indonesian Agribusiness Firm Hires Rabobank For Asset Sales Plan, Asia Pulse, 13 January 2003; Indonesia PT Astra Agro Lestari To Sell Non-Oil Palm Plantations, Asia Pulse, Jakarta, 27 February 2003; Astra Agro to sell non-core businesses, M. Taufiqurrahman, The Jakarta Post, Jakarta, 13 May 2003.

482 International Financing Review, London, 3 August 1996; Syndicated Loans - Indonesia - Loans To Be Signed - PT Bakrie Sumatera Plantation - $65m - Term loan, Euroweek , London, 4 October 1996; Bakrie Secures $75m Loan, The Jakarta Post, Jakarta, 12 October 1996; Annual Report 1996, PT Bakrie Sumatera Plantations Tbk., Jakarta, May 1997; Announcement of PT Bakrie Sumatera Plantations Tbk. to the Surabaya Stock Exchange, Jakarta, 12 October 2000; Bakrie Sumatera Plantations restructures $76m debts, IndoExchange, Jakarta, 12 October 2000; Annual Report 2000, PT Bakrie & Brothers Tbk., Jakarta, May 2001; Indonesia’s Bakrie Looking For Strategic Partner, Asia Pulse, Singapore, 28 November 2002; Annual Report 2002, PT Bakrie Sumatera Plantations Tbk., Jakarta, April 2003.

483 Agro Hope sows seeds of future in Kalimantan, New Straits Times, Singapore, 22 December 1998; Dutch Bank, UK CDC Agree to Loan Extension for Agro Indomas, Asia Pulse, Singapore, 23 December 1998; PT Agro Indomas gets $25m loan from foreign banks, The Jakarta Post, Jakarta, 30 January 1999; CDC arranges US$14m for new oil palm business in Indonesia, Press Release CDC Group Plc., London, 9 March 1999; Annual Report 2001/2002, PT Agro Indomas, Jakarta, May 2002.

484 Annual Report 2001/2002, PT Agro Indomas, Jakarta, May 2002.


486 Loanware, Capital Data Ltd., London, May 2001.

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487 USD40 Million Syndicated Term Loan Facility, Announcement to the Kuala Lumpur Stock Exchange,

Kumpulan Guthrie Berhad, Kuala Lumpur, 31 March 2003.

488 Loanware, Capital Data, London, May 2001.






494 Annual Report 1996, PT PP London Sumatra Indonesia Tbk., Jakarta, April 1997; Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2003.









503 Asia - Loans, Euroweek, London, 22 March 2002.

504 Banks launch US$100 million COFCO deal, Prakash Chakravarti, FinanceAsia, 13 August 2002; Cofco loan a roaring success, Prakash Chakravarti, FinanceAsia, 16 September 2002; China - Loans, Euroweek, London, 20 September 2002.

505 Website FMO (www.fmo.nl), Viewed in May 2003.

506 Indonesian Trade Credit Facility, IFC Press Release, Washington, 20 May 1999.

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507 Annual Report 1996, PT SMART Corporation Tbk., Jakarta, April 1997; Prospectus for the IPO of Agri-

Resources Ltd., Singapore, 2 July 1999; Annual Report 2000, PT SMART Tbk., Jakarta, May 2001; Annual Report 2000, Golden Agri-Resources Ltd., Singapore, July 2001.




511 Corporate Brochure, Vopak Vegoil Logistics, Vlaardingen, March 2003.

512 Annual Report 2002, Karlshamns AB, Karlshamn, April 2003.

513 Karlshamns takes actions to improve conditions for palm oil production, Press release Karlshamns, Karlshamn, 13 January 2003.


515 Website Statistics Sweden (www.scb.se), Viewed in January 2004.



518 Website Alba Handels (www.alba.se), Viewed in January 2004.

519 Website Arla Foods (www.arlafoods.com), Viewed in September 2003.

520 Website Lurpak (www.lurpak.com), Viewed in September 2003.


522 Raisio Group Plans To Concentrate Carlshamn Mejeri's Margarine Production To Finland And To Poland, Press Release Raisio Group plc, Helsinki, 2 May 2002; Website Carlshamn Mejeri (www.carlshamn.com), Viewed in January 2004.


524 Website Norrmejerier (www.norrmejerier.se), Viewed in January 2004.


526 Annual Report 2002, Skånemejerier, Malmö, April 2003; Website Skånemejerier (www.skanemejerier.se), Viewed in January 2004; Website Norrmejerier (www.norrmejerier.se), Viewed in January 2004.


528 Website Unilever Bestfoods (www.unilever.se), Viewed in January 2004.




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537 Annual Report 2002, CSM, Diemen, December 2002.

538 Website KåKå (www.kaka.se), Viewed in January 2004.

539 Website Alba Handels (www.alba.se), Viewed in January 2004.

540 Website Masterfoods Sweden (www.unclebens.se), Viewed in January 2004.

541 Website Procordia Food (www.procordiafood.com), Viewed in January 2004.

542 Website Food from Sweden (www.foodfromsweden.com), Viewed in January 2004.




546 Website Valoratrade (www.valoratrade.com), Viewed in January 2004; Website National Importers (www.nationalimporters.com), Viewed in January 2004.

547 Website National Importers (www.nationalimporters.com), Viewed in January 2004.

548 Website Göteborgs Kex (www.goteborgskex.se), Viewed in January 2004.

549 Website KelsenBisca (www.kelsenbisca.com), Viewed in January 2004.

550 Website Pågen (www.pagen.se), Viewed in January 2004.

551 Website Semper (www.semperfoods.com), Viewed in January 2004.

552 Website Cerealia Bakeries (www.cerealia-bakeries.com), Viewed in January 2004.

553 Market Profile: Sweden - Cakes And Pastries, Datamonitor Inc., New York, 21 October 2002.

554 Website Delicato (www.delicato.se), Viewed in January 2004.

555 Website Frödinge Mejeri (www.frodinge.se), Viewed in January 2004.

556 Website Valoratrade (www.valoratrade.com), Viewed in January 2004; Website National Importers (www.nationalimporters.com), Viewed in January 2004.


558 Website Pågen (www.pagen.se), Viewed in January 2004.

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562 Market Profile: Sweden - Confectionery, Datamonitor Inc., New York, 21 October 2002; Market Profile: Sweden - Chocolate Confectionery, Datamonitor Inc., New York, 21 October 2002; Market Profile: Sweden - Gum Confectionery, Datamonitor Inc., New York, 20 November 2002; Market Profile: Sweden - Sugar Confectionery, Datamonitor Inc., New York, 20 November 2002.

563 Market Profile: Sweden - Ice Cream, Datamonitor Inc., New York, 7 October 2002.

564 Website Cloetta Fazer (www.cloettafazer.se), Viewed in January 2004.

565 Market Profile: Sweden - Chocolate Confectionery, Datamonitor Inc., New York, 21 October 2002.

566 Website Marabou (www.marabou.com), Viewed in January 2004; Website Kraft Foods Nordic (www.kraftfoodsnordic.com), Viewed in January 2004.



569 Website Nestlé Sverige (www.nestle.se), Viewed in January 2004.



572 Website Cloetta Fazer (www.cloettafazer.se), Viewed in January 2004.

573 Market Profile: Sweden - Sugar Confectionery, Datamonitor Inc., New York, 20 November 2002.

574 Website MalacoLeaf (www.malacoleaf.com), Viewed in January 2004.

575 Market Profile: Sweden - Sugar Confectionery, Datamonitor Inc., New York, 20 November 2002.

576 Website GB Glace (www.gb.se), Viewed in January 2004.


578 Website SIA Glass (www.siaglass.se), Viewed in January 2004.

579 Raisio Group Sold Carlshamn's Ice-Cream Business, Press Release Raisio Group, Helsinki, 13 January 2003; Nestlé and Ingman form a new Ice cream company in Sweden, Press Release Nestlé Sverige, Helsingborg, 15 October 2003.


581 Website Swedish Glace (www.soydessert.com), Viewed in October 2003.

582 Website Triumfglass (www.triumfglass.se), Viewed in January 2004.



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586 Market Profile: Sweden - Popcorn, Datamonitor, New York, 12 August 2002; Market Profile: Sweden - Snacks, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Savory Snacks, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Snack Nuts, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Savory biscuits, Datamonitor, New York, 4 November 2002; Market Profile: Sweden - Potato Chips, Datamonitor, New York, 4 November 2002.

587 Website Kraft Foods Nordic (www.kraftfoodsnordic.com), Viewed in January 2004; Website Estrella (www.estrella.dk), Viewed in January 2004; Website Old El Paso (www.oldelpaso.nu), Viewed in January 2004.

588 Market Profile: Sweden - Popcorn, Datamonitor, New York, 12 August 2002; Market Profile: Sweden - Savory Snacks, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Savory Nuts, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Potato Chips, Datamonitor, New York, 4 November 2002.

589 Website Old El Paso (www.oldelpaso.nu), Viewed in January 2004.

590 Website OLW (www.olw.se), Viewed in January 2004; Website Chips (www.chips.fi), Viewed in January 2004.

591 Market Profile: Sweden - Popcorn, Datamonitor, New York, 12 August 2002; Market Profile: Sweden - Savory Snacks, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Savory Nuts, Datamonitor, New York, 28 October 2002; Market Profile: Sweden - Potato Chips, Datamonitor, New York, 4 November 2002.

592 Website Procter & Gamble Nordic (www.procter.se), Viewed in January 2004.

593 Website Seege (www.seege.se), Viewed in January 2004; Website Chips (www.chips.fi), Viewed in January 2004.

594 Website Svenska LantChips (www.svenskalantchips.se), Viewed in January 2004.

595 Website Göteborgs Kex (www.goteborgskex.se), Viewed in January 2004.

596 Market Profile: Sweden - Savory Biscuits, Datamonitor, New York, 4 November 2002.

597 Website Gunnar Dafgård (www.dafgard.se), Viewed in January 2004.

598 Website Lithells (www.lithells.se), Viewed in January 2004.

599 Website Scan Foods (www.scan.se), Viewed in January 2004.

600 Website Spira (www.spira.se), Viewed in January 2004.

601 Website McCain Foods Nordic (www.mccain-nordic.com), Viewed in January 2004.



604 Website Topp Livsmedelsprodukter (www.toppibralanda.com), Viewed in January 2004.

605 Website Sardus (www.sardus.se), Viewed in January 2004.

606 Website Findus (www.findus.se), Viewed in January 2004.

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607 Website Gunnar Dafgård (www.dafgard.se), Viewed in January 2004.

608 Website Uniq (www.uniqplc.com), Viewed in January 2004.


610 Website Sardus (www.sardus.se), Viewed in January 2004.


612 Website Nestlé Sverige (www.nestle.se), Viewed in January 2004.

613 Website Nestlé Barnmat (www.nestlebarnmat.se), Viewed in January 2004.



616 Website Friggs (www.friggs.se), Viewed in January 2004.

617 Market Profile: Sweden - Skincare, Datamonitor, New York, 14 October 2002.

618 Market Profile: Sweden - Make-Up, Datamonitor, New York, 14 October 2002; Market Profile: Sweden - Lip Make-Up, Datamonitor, New York, 14 October 2002; Market Profile: Sweden - Face Make-Up, Datamonitor, New York, 14 October 2002; Market Profile: Sweden - Nail Make-Up, Datamonitor, New York, 14 October 2002; Market Profile: Sweden - Eye Make-Up, Datamonitor, New York, 14 October 2002


620 Website Beiersdorf Sweden (www.beiersdorf.se), Viewed in December 2003.


622 Website Colgate-Palmolive (www.colgate.se), Viewed in January 2004.

623 Website L’Oréal (www.loreal.com), Viewed in January 2004.

624 Market Profile: Sweden - Lip Make-Up, Datamonitor, New York, 14 October 2002.


626 Website Coty (www.coty.com), Viewed in January 2004.


628 Website Elizabeth Arden (www.elizabetharden.com), Viewed in January 2004.


630 Website Esteé Lauder (www.esteelauder.com), Viewed in January 2004.



633 Website Eurocos (www.claudiacosmetics.com), Viewed in January 2004.


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635 Website Henkel Norden (www.henkel-norden.com), Viewed in January 2004.



638 Website Groupe LVMH (www.lvmh.com), Viewed in January 2004.






644 Website Colgate-Palmolive (www.colgate.se), Viewed in January 2004.

645 Website Henkel Norden (www.henkel-norden.com), Viewed in January 2004.



648 Compound Feed Production (1989-2002), European Feed Manufacturers Federation (FEFAC), Brussels, 4 April 2003.




652 Website Agri Project (www.agriproj.com), Viewed in August 2003.

653 Website BBS Oil-Vegetable Ltd. (www.oils-vegetable.com), Viewed in August 2003.

654 Website Nafed (www.nafed.gov.id), Viewed in September 2003.

655 Website Fontannaz Commodities (www.fontannaz.com), Viewed in August 2003.

656 Website Gardner Smith (www.gardnersmith.com), Viewed in August 2003.



659 Website Guthrie Symington (www.gsymconnect.com), Viewed in August 2003.

660 Soya & Oilseed Bluebook 2004, Soyatech Inc., Bar Harbor, October 2003.

661 Website Harris Tobias (www.harristobias.com), Viewed in August 2003.

662 Website Kerfoot Group (www.kerfootgroup.co.uk), Viewed in August 2003.

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663 Website PalmOil.com (www.palmoil.com), Viewed in August 2003; Website Prestige Securities

(www.prestigeit.com), Viewed in August 2003.



666 Website Andrew Weir Shipping (www.aws.co.uk), Viewed in August 2003.

667 Website Koole (www.koole.com), Viewed in September 2003.

668 Website Port of London (www.portoflondon.co.uk), Viewed in November 2003.

669 Website Port of London (www.portoflondon.co.uk), Viewed in November 2003; Website TDG (www.tdg.co.uk), Viewed in December 2003.

670 Website Port of London (www.portoflondon.co.uk), Viewed in November 2003.

671 Corporate Brochure, Vopak Vegoil Logistics, Vlaardingen, March 2003.

672 Output Of Refined, Deodorised Vegetable Oils, Marine Oils and Animal Fats by United Kingdom Processing Plants, Press Release Department for Environment, Food and Rural Affairs (DEFRA), London, 22 March 2002.

673 Report From The State of the United Kingdom forming part of the IENICA Project, ACTIN, Leatherhead, (Surrey), February 1999.

674 Website Aarhus United (www.aarhusunited.com), Viewed in August 2003.


676 Unpublished research by Friends of the Earth EWNI, September 2002.



679 Website Britannia Food (www.britanniafood.com), Viewed in August 2003.


681 Annual Report 2002, PT Cahaya Kalbar Tbk., Jakarta, April 2003.

682 Soya & Oilseed Bluebook 2004, Soyatech Inc., Bar Harbor, October 2003; Website Fédération de l'Industrie de l'Huilerie de la CE (www.fediol.be), Viewed in August 2003; Website Cargill (www.cargill.com), Viewed in August 2003.

683 Case No COMP/M.2693 - ADM / ACTI, European Commission, Brussels, 11 February 2002.


685 Karlshamns responds to environmental fears, Foodnavigator.com, 14 January 2003.


687 Website Pura Foods (www.pura.co.uk), Viewed in August 2003.

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689 McDonald’s Fact File, MrcDonald’s UK, London, April 1995.


691 Acquisition by Dairy Crest of St Ivel Spreads Business from Uniq to be completed on November 1st, Press Release Dairy Crest Group plc, Esher, 30 October 2002.

692 Margarine, Other Table Spreads and Solid Cooking Fat Production in the United Kingdom and the Refined Oils and Animal Fats Used in their Manufacture, Press Release Department for Environment, Food and Rural Affairs (DEFRA), London, 20 March 2002.

693 Website Statistics UK (www.statistics.gov.uk), Viewed in August 2003.

694 Website UK Margarine and Spreads Association (www.margarine.org.uk), Viewed in August 2003.

695 Arla Foods concludes merger agreement with Express Dairies of the UK, Press release Arla Foods amba, 27 March 2003; Company profile Arla Foods UK Plc, Dairy Industry Newsletter, Framingham Pigot, April 2003.

696 Market Profile: United Kingdom - Fats And Spreads, Datamonitor, New York, 4 November 2002.

697 Website Lurpak (www.lurpak.com), Viewed in September 2003.


699 Website Cardowan Creameries (www.cardowan.co.uk), Viewed in December 2003.

700 Dairy Crest spreads out with pounds 86.5m St Ivel deal, Susie Mesure, The Independent , London, 1 October 2002; Website Dairy Crest (www.dairycrest.co.uk), Viewed in August 2003.


702 Website Matthews Foods (www.matthews-foods.co.uk), Viewed in August 2003.


704 'Misleading' food producers named, BBC News, London, 24 April 2002; Website Pure Spreads (www.purespreads.com), Viewed in December 2003.



707 Website Raisio Group (www.raisiogroup.com), Viewed in October 2003.


709 ABF disposes of Burtons Biscuits, The Public Ledger, Tunbridge Wells, 3 November 2000; Website Aarhus United (www.aarhusunited.com), Viewed in August 2003.

710 Website Unilever Bestfoods UK (www.ubfoods.co.uk), Viewed in August 2003.




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719 Website Abitec Group (www.abitec.com), Viewed in January 2004.

720 Annual Report 2002, CSM, Diemen, December 2002.

721 Website BFP Wholesale (www.bfpwholesale.com), Viewed in August 2003.

722 Website Croda Food Services (www.croda-foods.co.uk), Viewed in September 2003.

723 Website Golden West Foods (www.goldenwest.co.uk), Viewed in January 2004.

724 Website H.J. Heinz UK (www.heinz.co.uk), Viewed in December 2003.


726 Website Greencore Group (www.greencore.ie), Viewed in December 2003.

727 Website HP Foods (www.hpfoods.com), Viewed in December 2003.

728 Website Kraft Foods UK (www.kraftfoods.co.uk), Viewed in December 2003.


730 Website Mars (www.mars.com), Viewed in December 2003.

731 Website Unilever Bestfoods UK (www.ubfoods.co.uk), Viewed in August 2003.

732 Website Verstegen (www.verstegen.nl), Viewed in December 2003.

733 Website CYB Group (www.cybgroup.co.uk), Viewed in August 2003.


735 Regulation (EEC) No 4064/89 Merger Procedure - Case No IV/M.1227 - Cargill / Vandemoortele JV, European Commission, Brussels, 20 July 1998.

736 Website Biscuit, Cake, Chocolate and Confectionery Alliance (www.bccca.org.uk), Viewed in December 2003.

737 Website RHM Group (www.rhm.com), Viewed in January 2004.

738 Market Profile: United Kingdom - Cakes And Pastries, Datamonitor, New York, 21 October 2002

739 Palm Oil, Kurt Berger, Website Britannia Food (www.britanniafood.com), Viewed in August 2003.

740 Website Burton’s Foods (www.burtonsfoods.com), Viewed in December 2003.

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741 Website Top 100 Analysis by Plimsoll Publishing Ltd (www.majorcompanies.co.uk), Viewed in January

2004.

742 Website Northern Foods (www.northern-foods.co.uk), Viewed in December 2003.


744 Market Profile: United Kingdom - Sweet Biscuits, Datamonitor, New York, 28 October 2002.




748 Website United Biscuits (www.unitedbiscuits.com), Viewed in December 2003.


750 Website Allied Bakeries (www.alliedbakeries.co.uk), Viewed in January 2004.

751 Website British Bakeries (www.britishbakeries.co.uk), Viewed in January 2004.

752 Website Greencore Group (www.greencore.ie), Viewed in December 2003.


754 Website Top 100 Analysis by Plimsoll Publishing Ltd (www.majorcompanies.co.uk), Viewed in January 2004.


756 Market Profile: United Kingdom - Cakes And Pastries, Datamonitor, New York, 21 October 2002

757 Website Vandemoortele (www.vandemoortelebakeryproducts.com), Viewed in December 2003.

758 Website Warburtons (www.warburtons.co.uk), Viewed in January 2004.

759 Website Top 100 Analysis by Plimsoll Publishing Ltd (www.majorcompanies.co.uk), Viewed in January 2004.

760 Website Biscuit, Cake, Chocolate and Confectionery Alliance (www.bccca.org.uk), Viewed in December 2003.

761 Market Profile: United Kingdom - Chocolate Confectionery, Datamonitor, New York, 4 November 2002.

762 Market Profile: United Kingdom - Ice Cream, Datamonitor, New York, 23 September 2002.

763 Website Cadbury Schweppes (www.cadburyschweppes.com), Viewed in December 2003.





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768 New risks in old supply chains: Where does your palm oil come from?, ISIS Asset Management / ProForest,

London, December 2003.

769 Website Ferrero (www.ferrero.it), Viewed in December 2003.

770 Website Kraft Foods UK (www.kraftfoods.co.uk), Viewed in December 2003.





775 Website Nestlë UK (www.nestle.co.uk), Viewed in December 2003.







782 New risks in old supply chains: Where does your palm oil come from?, ISIS Asset Management / ProForest, London, December 2003.



785 Website Haägen-Dazs (www.haagen-dazs.co.uk), Viewed in December 2003.









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795 Website Unilever UK (www.unilever.co.uk), Viewed in August 2003.


797 Market Profile: United Kingdom - Popcorn, Datamonitor, New York, 12 August 2002; Market Profile: United Kingdom - Potato Chips, Datamonitor, New York, 28 October 2002; Market Profile: United Kingdom - Savoury Snacks, Datamonitor, New York, 28 October 2002; Market Profile: United Kingdom - Snacks, Datamonitor, New York, 4 November 2002; Market Profile: United Kingdom - Snack Nuts, Datamonitor, New York, 11 November 2002.

798 Market Profile: United Kingdom - Savoury Biscuits, Datamonitor, New York, 20 November 2002.


800 Market Profile: United Kingdom - Popcorn, Datamonitor, New York, 12 August 2002.

801 Website Golden Wonder (www.goldenwonder.com), Viewed in December 2003.

802 Wonder will never cease, Bakeryandsnacks.com, 7 October 2003.

803 Market Profile: United Kingdom - Savoury Snacks, Datamonitor, New York, 28 October 2002.




807 Market Profile: United Kingdom - Potato Chips, Datamonitor, New York, 28 October 2002.


809 Market Profile: United Kingdom - Snack Nuts, Datamonitor, New York, 11 November 2002.

810 Oil Quality Management And Measurement During Crisp/Snack Frying In Palmolein – What Is Important To Product Quality?, Eugene W. Hammond, United Biscuits (UK) Ltd., Presentation at the OFIC 2000 Conference, 4 September 2000, Kuala Lumpur.

811 Website Walkers (walkers.corpex.com), Viewed in December 2003.

812 Market Profile: United Kingdom - Potato Chips, Datamonitor, New York, 28 October 2002


814 ADM Food Oils Group Named Frito-Lay North America 2001 Supplier of the Year, Press Release ADM, Decatur (Illinois), 25 March 2002.






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820 Oil Quality Management And Measurement During Crisp/Snack Frying In Palmolein – What Is Important To

Product Quality?, Eugene W. Hammond, United Biscuits (UK) Ltd., Presentation at the OFIC 2000 Conference, 4 September 2000, Kuala Lumpur.

821 Website Grampian Country Food Group (www.gcfg.com), Viewed in December 2003.




825 Website Boots Frites (www.bootsfrites.nl), Viewed in December 2003.

826 Website Garden Isle Frozen Foods (www.gardenisle.co.uk), Viewed in December 2003.

827 Website McCain Foods (www.mccain.com), Viewed in December 2003; Website McCain Foods (GB) (www.mccain.co.uk), Viewed in December 2003.



830 Website Findus (www.findus.co.uk), Viewed in January 2004.


832 Website McCain Foods (www.mccain.com), Viewed in December 2003; Website McCain Foods (GB) (www.mccain.co.uk), Viewed in December 2003.


834 Website Perkins Foods (www.perkinsfoods.co.uk), Viewed in January 2004.

835 ABN AMRO Capital backs public-to-private of Perkins Foods, Press Release ABN AMRO Capital, London, 18 December 2000.


837 Website Tryton Foods (www.auntbessies.co.uk), Viewed in January 2004.

838 Website Uniq (www.uniqplc.com), Viewed in January 2004.

839 Website H.J. Heinz UK (www.heinz.co.uk), Viewed in December 2003.





844 Market Profile: United Kingdom - Skincare, Datamonitor, New York, 14 October 2002.

845 Market Profile: United Kingdom - Hand & Body Care, Datamonitor, New York, 26 July 2003.

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846 Market Profile: United Kingdom - Soap, Datamonitor, New York, 20 November 2003


848 Website Croda Chemicals Europe (www.croda.co.uk), Viewed in September 2003.

849 Website Stephenson Group (www.stephensongroup.co.uk), Viewed in August 2003.

850 Website PalmOil.com (www.palmoil.com), Viewed in August 2003.

851 Website Beiersdorf UK (www.beiersdorf.co.uk), Viewed in December 2003.


853 Website Colgate-Palmolive (UK) (www.colgate.co.uk), Viewed in December 2003.


855 Website Coty (www.coty.com), Viewed in January 2004.

856 Website Crabtree & Evelyn (www.crabtree-evelyn.co.uk), Viewed in January 2004.

857 Website Elizabeth Arden (www.elizabetharden.com), Viewed in December 2003.


859 Website Esteé Lauder (www.elcompanies.com), Viewed in December 2003.



862 Website Henkel (www.henkel.co.uk), Viewed in December 2003.

863 Website L’Oréal (UK) (www.loreal.co.uk), Viewed in December 2003.



866 Website Lever Fabergé Ltd. (www.leveruk.com), Viewed in August 2003.


868 Market Profile: United Kingdom - Soap, Datamonitor, New York, 20 November 2003.


870 Website Groupe LVMH (www.lvmh.com), Viewed in December 2003.




874 Website PZ Cussons (www.cussons.com), Viewed in August 2003.

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875 Market Profile: United Kingdom - Soap, Datamonitor, New York, 20 November 2003


877 Website Kuala Lumpur Kepong (www.standardsoap.co.uk), Viewed in January 2004.

878 Website Henkel (www.henkel.co.uk), Viewed in December 2003.

879 Website Lever Fabergé Ltd. (www.leveruk.com), Viewed in August 2003.



882 Website Reckitt Benkiser (www.reckittbenckiser.com), Viewed in January 2004.

883 Raw Materials Usage In Production Of Animal Feedingstuffs In Great Britain, Department for Environment Food and Rural Affairs (DEFRA), London, 7 August 2003.

884 Raw Materials Usage In Production Of Animal Feedingstuffs In Great Britain, Department for Environment Food and Rural Affairs (DEFRA), London, 7 August 2003.

885 Largest UK mill plans to close two of its plants, The Public Ledger, Tunbridge Wells, 7 July 2003; Website Unitrition International (www.unitrition.co.uk), Viewed in August 2003.

886 Website Fédération de l'Industrie de l'Huilerie de la CE (www.fediol.be), Viewed in August 2003.


888 Website Barclays (www.barclays.co.uk), Viewed in May 2003.

889 Annual Report 2000, CDC Group Plc., London, March 2001.

890 Website CDC Group (www.cdcgroup.com), Viewed in May 2003.

891 Agro Hope sows seeds of future in Kalimantan, New Straits Times, Singapore, 22 December 1998; Dutch Bank, UK CDC Agree to Loan Extension for Agro Indomas, Asia Pulse, Singapore, 23 December 1998; PT Agro Indomas gets $25m loan from foreign banks, The Jakarta Post, Jakarta, 30 January 1999; CDC arranges US$14m for new oil palm business in Indonesia, Press Release CDC Group Plc., London, 9 March 1999; Annual Report 2001/2002, PT Agro Indomas, Jakarta, May 2002.


893 Profile and Directory of Indonesian Plantation 1997/1998, PT Capricorn Indonesia Consult (CIC), Jakarta, 1998; Prospect of the Plantation & CPO Industry in Indonesia 2000-2010, Business Intelligence Report (BIRO), Jakarta, 1999; CDC Enters Oil Palm Sector, The Jakarta Post, Jakarta, 21 August 1999; CDC injects another US$32m into the Indonesian oil palm industry, Press Release CDC Group Plc., London, 23 August 1999; The dispute between the indigenous community and PT Harapan Sawit Lestari, oil palm plantation Manis Mata, Ketapang district, West Kalimantan, Report by Walhi Kalbar & Down to Earth, Palangkaraya / London, September 2000; Annual Report 2000, CDC Group Plc., London, March 2001.

894 BCA's Mysterious Suitors, Sadanand Dhume, Far Eastern Economic Review, Hong Kong, 12 July 2001; Website HSBC Bank (www.hsbc.co.uk), Viewed in May 2003.

895 HSBC signs loan agreement, The Jakarta Post, Jakarta, 11 October 2000; Annual Report 2001, Anglo-Eastern Plantations Plc., London, April 2002; Anglo-Eastern Plantations Plc - Preliminary Announcement, Anglo-Eastern Plantations Plc., London, 10 April 2003.

896 Annual Report 2001, Anglo-Eastern Plantations Plc., London, April 2002.

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897 International Financing Review, London, 22 April 1995; Syndication Credit for BSP, Kompas, Jakarta, 1 July

1995; Annual Report 1996, PT Bakrie Sumatera Plantations Tbk., Jakarta, May 1997; Projectware, Capital Data, London, June 2001.

898 International Financing Review, London, 3 August 1996; Syndicated Loans - Indonesia - Loans To Be Signed - PT Bakrie Sumatera Plantation - $65m - Term loan, Euroweek , London, 4 October 1996; Bakrie Secures $75m Loan, The Jakarta Post, Jakarta, 12 October 1996; Annual Report 1996, PT Bakrie Sumatera Plantations Tbk., Jakarta, May 1997; Announcement of PT Bakrie Sumatera Plantations Tbk. to the Surabaya Stock Exchange, Jakarta, 12 October 2000; Bakrie Sumatera Plantations restructures $76m debts, IndoExchange, Jakarta, 12 October 2000; Annual Report 2000, PT Bakrie & Brothers Tbk., Jakarta, May 2001; Indonesia’s Bakrie Looking For Strategic Partner, Asia Pulse, Singapore, 28 November 2002; Annual Report 2002, PT Bakrie Sumatera Plantations Tbk., Jakarta, April 2003.


900 Annual Report 2001/2002, The Good Hope Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The Bukit Darah Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The Indo-Malay Estates Ltd., Colombo, July 2002; Annual Report 2001/2002, The Selinsing Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The Shalimar (Malay) Estate Co. Ltd., Colombo, July 2002.

901 Annual Report 2002, Kuala Lumpur Kepong Berhad, Ipoh, December 2002.

902 Annual Report 2001, Kumpulan Guthrie Berhad, Kuala Lumpur, May 2002.






908 London Sumatra to offer 38.8m shares, The Jakarta Post, Jakarta, 10 May 1996; International Financing Review, London, 1 June 1996; Lippo Karawachi reports 600% oversubscription of its IPO, The Jakarta Post, Jakarta, 15 June 1996; International Financing Review, London, 29 June 1996; Bondware, Capital Data, London, May 2001.


910 Lonsum gets $213m loan, The Jakarta Post, Jakarta, 18 September 1997.

911 Lonsum appoints HSBC, The Jakarta Post, Jakarta, 18 April 1998; LonSum Annual Report 1997; Corporate Update on PT PP London Sumatra Indonesia Tbk., BNI Securities, Jakarta, 15 July 1998.

912 Annual Report 2001, Rowe Evans Investments Plc., Tunbridge Wells, May 2002.

913 Annual Report 2001, PT Indofood Sukses Makmur Tbk., Jakarta, May 2002.

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914 Singapore Golden Agri Offers 568.6M Shrs IPO At US$0.638, Hasan Jafri, Dow Jones Newswires,

Singapore, 2 July 1999; Agri set to list on Singapore in $400m IPO, Euroweek, London, 28 May 1999; Prospectus for the IPO of Agri-Resources Ltd., Singapore, 2 July 1999; AFP spin-off's IPO 18.4 times subscribed, Annette Pau, Business Times, Singapore, 9 July 1999; Golden Agri-Resources Ltd. Half Year Financial Statement for the six months ended 30 June 1999, Singapore, August 1999.




918 Website Lazard (www.lazard.com), Viewed in March 2003.

919 Indonesian Bakrie, Major Creditors Agree Restructure Plan, Noel Fung, Dow Jones, Jakarta, 9 December 1999; Bakrie creditors approve $1.08 billion debt deal, The Jakarta Post, Jakarta, 29 November 2000; Bakrie’s Restructuring Debts Completed, Indonesian Business, Jakarta, 30 November 2000; Indonesia 's Bakrie, Garuda in landmark debt restructuring deals, Shoeb Kagda, Business Times, Singapore, 26 January 2001; Debt restructuring deal to earn Bakrie & Brothers Rp 4t, The Jakarta Post, Jakarta, 29 June 2001; Bakrie Brothers 1.086 bln usd debt restructuring seen effective Nov 28, AFX-Asia, Jakarta, 18 September 2001; Indonesia debt swap takes effect, Tom McCawley, Financial Times, London, 30 November 2001; Annual Report 2002, PT Bakrie Sumatera Plantations Tbk., Jakarta, April 2003.

920 London Sumatra Sells Stake to Lazard Asia, Dow Jones Newswires, Jakarta, 29 June 1999; Lazard Asia To Pay $100M For London Sumatra Stake; Grainne McCarthy, Dow Jones Newswires, Jakarta, 29 June 1999; Lazard Group Asia to buy 50% stake in London Sumatra, The Financial Times, London, 30 June 1999; A Profile of PT PP London Sumatra Indonesia Tbk, Asia Pulse Analysts, Singapore, 9 August 1999.

921 Website NM Rothschild & Sons (www.nmrothschild.com), Viewed in May 2003.

922 Currency woes plague Indonesian equity deals, Euroweek, London, 24 October 1997; PT Astra Agro Lestari to offer 125.8m shares, The Jakarta Post, Jakarta, 29 October 1997; Astra Agro IPO boosted by dollar earnings link, Euroweek, London, 14 November 1997; Astra Agro hits oil slick, International Financing Review, London, 15 November 1997; PT AAL to sell shares, The Jakarta Post, Jakarta, 20 November 1997.


924 Website Royal Bank of Scotland (www.royalbankscot.co.uk), Viewed in May 2003.

925 Annual Report 2001, Anglo-Eastern Plantations Plc., London, April 2002.




929 BCA's Mysterious Suitors, Sadanand Dhume, Far Eastern Economic Review, Hong Kong, 12 July 2001, Website Standard Chartered (www.standardchartered.com), Viewed in May 2003.

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930 Annual Report 2001/2002, The Good Hope Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The

Bukit Darah Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The Indo-Malay Estates Ltd., Colombo, July 2002; Annual Report 2001/2002, The Selinsing Co. Ltd., Colombo, July 2002; Annual Report 2001/2002, The Shalimar (Malay) Estate Co. Ltd., Colombo, July 2002.

931 Annual Report 2001, Kulim (Malaysia) Berhad, Johor Bahru, May 2002.


933 Profile and Directory of Indonesian Plantation 1997/1998, PT Capricorn Indonesia Consult (CIC), Jakarta, 1998.


935 Annual Report 2001, PT Indofood Sukses Makmur Tbk., Jakarta, May 2002.

936 Golden Agri may lose $475m if banks fold up, Felisa Batacan, Straits Times, Singapore, 7 April 2001; APP Parent Co Discloses Ownership Of Offshore Bank, Sara Webb, Asian Wall Street Journal, Singapore, 24 May 2001.



939 Website Aberdeen Asset Management (www.aberdeen-asset.com), Viewed in May 2003.


941 Website Chelsea Financial Services (www.chelseafs.co.uk), Viewed in May 2003.

942 Indonesian Plantation Co Hopes To Restructure Debt, Asia Pulse, Jakarta, 20 November 2001; Annual Report 2002, PT PP London Sumatra Indonesia Tbk., Jakarta, April 2003.

Documents

European buyers of Indonesian palm oil - Framtiden.no · European buyers of Indonesian palm oil A research paper prepared for Friends of the Earth England, Wales and Northern Ireland,