Here's Why Cargill Suspended Palm Oil Deal With Malaysia's Leading Planter Sime Darby: Bloomberg

  • Leading agricultural trader Cargill Inc stopped buying palm oil products from Sime Darby Plantation Bhd SDPNF following indication of forced labor, Bloomberg reports
  • Sime Darby acknowledged that Cargill had suspended all new sourcing of palm oil and derivative products since February 25 for reasons undisclosed. The companies were in talks.
  • Sime is a leading oil palm planter by acreage.
  • The U.S. Customs and Border Protection looked to seize Sime's palm oil and related goods as Sime used convicts and forced or indentured labor to manufacture products.
  • Sime acknowledged it is taking measures to improve its labor rights and that other customers have taken up the supply of bulk products to Cargill in India.
  • Sime also acknowledged that Italian confectionery giant Ferrero would stop sourcing palm oil from the company. 
  • Ferrero, General Mills Inc GIS, and The Hershey Co HSY ceased to have been Sime's customers for a while.
  • Photo by tristantan via Pixabay

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