Burgess COMMENTARY

Peter Burgess

Clear those peatlands and we won’t buy your palm oil, Bunge tells BLD Plantation

If you’re a palm oil producer and plan to covert peatland and rainforest into new plantations, be warned: the world’s biggest agribusiness is not interested in what you have to offer.

Palm oil.

Earlier this week, the food giant Bunge responded to reports that the Malaysian palm oil business BLD Plantation is looking to clear 14,000 hectares of peatlands in Sarawak.

'Bunge is playing a constructive role in moving the palm oil industry rapidly away from the destruction of forests and peatlands.'

The move would violate Bunge’s palm oil sourcing policy. Speaking to Mongabay, the company said: “In light of the recently reported plans of BLD, Bunge has suspended indefinitely any new commercial activity with Kirana and its affiliates.”

The move seems to have been prompted by an NGO campaign by Forest Heroes, which lodged a complaint against BLD’s decision, and alerting Bunge to take action. The campaigning organisation pointed out that Bunge's deforestation-free sourcing policy barred palm oil produced via conversion of peatlands and rainforests.

It also asked BLD to adopt a zero deforestation policy and restore an area of peatland equivalent to the 6,000 hectares it has already cleared.

“Bunge is playing a constructive role in moving the palm oil industry rapidly away from the destruction of forests and peatlands, and supporting sustainable, legal development in Sarawak,” said Forest Heroes chairman Glenn Hurowitz. “We’re confident that Bunge will move quickly with its regional business partners and the Sarawak government to channel development onto areas that don’t threaten forests, peat, or Native Customary Rights land.

“Both the government and the private sector have recognized that Sarawak can continue to grow its agricultural economy and employment while protecting forests, peat, and communities, and it’s important to ensure that BLD doesn’t undermine this critical statewide initiative.”