Sustainable Coconut Oil
Delivering solutions that benefit farmers, their communities, and our customers
Cargill’s purpose is to nourish the world in a safe, responsible and sustainable way. Our ambition is to have the most sustainable food supply chains in the world. As demand for coconut oil continues to grow, consumers want assurance that the coconut oil used in the products they buy is being produced responsibly. Our focus on sustainability guides our actions – Cargill has been working to improve the sustainability of our coconut oil supply chain for more than a decade. We are committed to sourcing coconut oil in an economical, environmentally sustainable and socially responsible manner. We promote good agricultural and sustainable business practices, support smallholder farmers to improve their livelihoods and help protect the wellbeing of coconut farming communities.
Our supply chain
Cargill operates a global coconut oil supply chain, including buying stations and crush plants in Indonesia and the Philippines and refining plants around the world. As a trader of major commodities globally, our key activities in the coconut oil supply chain include:
- Buying copra (dried coconut meat) from farms, smallholder farmers and cooperatives, consolidators and traders
- Processing copra at our crush plants and coconut oil at our refineries
- Sourcing, trading and refining coconut oil from third-party suppliers
Challenges
Demand for coconut oil globally – for use in cooking, food products, skincare products and soap – is outpacing supply. Most coconut growers are smallholder farmers with less than four hectares of land. With limited access to financing, farmers are not always able to supplement aging coconut trees, which produce declining yields, with new trees. Poor soil fertility and lack of agricultural inputs also affect productivity and crop quality. With training in good agricultural practices, farmers are able to improve productivity, adapt to changing rainfall patterns caused by climate change and adopt practices that preserve crop quality. Access to financing enables farmers to invest and scale their activities and improve working conditions, including use of safety equipment during harvesting. Cargill is working to address these agricultural, economic and social challenges in the coconut oil supply chain to help improve farmer livelihoods and protect the wellbeing of communities where we operate.
