Burger King cut ties with Indonesian's Palm oil supplier
Burger King, a giant US hamburger chain, cancelled its contract with its Indonesian supplier, PT Sinar Mas Agro Resources and Technology for palm oil supply. Burger King said Friday the Indonesian supplier had not adopted sustainable farming practices which are inconsistent with the corporate responsibility commitments. The Indonesian company plantations violated several regulations, including planting in some peatland swamps and secondary forests.
The environmentalists commended the move and encouraged other corporate consumers like Pizza Hut and Dunkin Donuts to do the same.
Other corporate consumers like Unilever, Nestle and Kraft Foods have also recently withdrawn their contracts from Sinar Mars.
Indonesia, the world’s known largest producer of palm oil, has stipulated sometime last year the use of biofuels to the manufacturers for some of their energy needs to reduce dependence on imported oil amid soaring global prices.
Environmental groups warned against it as it will contribute to the destruction of forests in Indonesia’s Kalimantan region, where massive oil palm plantations are being established to meet global demand. Some lawmakers were likewise worried that the demand would push its oil price up which will affect the people as this oil is widely used for cooking by the poor.
Malaysia is another provider of world’s palm oil. With Indonesia, both countries provide 87 percent of palm oil’s world market.
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