P&G teams up with MISI to ensure no deforestation in its palm oil supply chain

In palm oil supply chain (POSC) the smallholder farmers sell their fresh fruit bunch (FFB) to Palm Oil Mills through traders. Palm Oil Mills convert the FFB into crude palm oil (CPO). CPO is sold to the refinery, who converts CPO into frying oil and sends the product to the distributors. The distributors subsequently sell them to the consumers. Each member of the POSC will try to optimize its added value. The aim of this paper is to develop an added value formulation as a function of risk, investment and technology levels of each of the POSC member. To facilitate fair distribution of rewards a concept of added value utility based on rsk, investment and technology level was introduced. To optimize the added value distribution between the members the concept of stakeholder dialogue was used. The selling prices were negotiated between the actors until each reached a satisfactory value, which was ruled by the levels of optimum added value utility. This research is important because the developed model can facilitate a better formula to calculate the fair distribution of added values, therefore ensure its sustainability and improve the total supply chain added value.Keywords:Utility, Value Added, Palm Oil Supply Chain, Exponential FunctionAbstrakPada suatu rantai pasok agroindustri minyak sawit (RPMS), petani menjual tandan buah segar (TBS) ke pabrik CPO melalui pedagang/pemasok. Pabrik CPO merubah TBS menjadi CPO. CPO dijual ke refinery (pabrik minyak goreng), yang merubah CPO menjadi minyak goreng, dan menjualnya melalui distributor kepada para konsumen. Setiap anggota RPMS akan berusaha untuk mengoptimumkan nilai tambahnya masing-masing. Tujuan penulisan makalah ini adalah menyusun formula perhitungan nilai tambah RPMS yang dipengaruhi oleh tingkat risiko, tingkat investasi dan tingkat teknologi yang terkait dengan masingmasing pelaku rantai pasok. Untuk mengusahakan distribusi yang adil dari imbalan maka digunakan pendekatan stakeholder dialogue. Harga jual dinegosiasikan diantara para pelaku RPMS sampai didapat suatu nilai yang memuaskan semua pihak, yang ditentukan berdasarkan utilitas nilai tambah yang optimum. Penelitian ini penting karena model yang dikembangkan dapat memfasilitasi formula yang lebih baik untuk menghitung distribusi nillia tambah yang adil, sehingga akan dicapai keberlangsungan usaha dan meningkatnya nilai tambah total dari RPMS.Kata kunci: Utilitas, Nilai Tambah, Rantai Pasok Minyak Sawit, Fungsi Eksponensial.

Download Full-text

The Sustainability of Indonesia Pakistan Palm Oil Supply Chain

Jurnal Manajemen dan Agribisnis ◽

10.17358/jma.15.2.136 ◽

2018 ◽

Author(s):

Diana Chalil ◽

Riantri Barus

Keyword(s):

Supply Chain ◽

Palm Oil ◽

Oil Supply

Download Full-text

Governing sustainability in the Thai palm oil-supply chain: the role of private actors

Sustainability Science Practice and Policy ◽

10.1080/15487733.2021.2021688 ◽

2022 ◽

Vol 18 (1) ◽

pp. 37-54

Author(s):

Somjai Nupueng ◽

Peter Oosterveer ◽

Arthur P. J. Mol

Keyword(s):

Supply Chain ◽

Palm Oil ◽

Oil Supply ◽

Private Actors

Download Full-text

Palm oil supply chain factors impacting chlorinated precursors of 3-MCPD esters

Food Additives & Contaminants Part A ◽

10.1080/19440049.2021.1960430 ◽

2021 ◽

pp. 1-14

Author(s):

Soon Huat Tiong ◽

Anusha Nair ◽

Siti Aishah Abd. Wahid ◽

Norliza Saparin ◽

Nur Azwani Ab. Karim ◽

...

Keyword(s):

Supply Chain ◽

Palm Oil ◽

Oil Supply ◽

Mcpd Esters

Download Full-text

Opportunities to Optimize the Palm Oil Supply Chain in Sumatra, Indonesia

Energies ◽

10.3390/en12030420 ◽

2019 ◽

Vol 12 (3) ◽

pp. 420 ◽

Cited By ~ 12

Author(s):

Fumi Harahap ◽

Sylvain Leduc ◽

Sennai Mesfun ◽

Dilip Khatiwada ◽

Florian Kraxner ◽

...

Keyword(s):

Supply Chain ◽

Palm Oil ◽

Programming Model ◽

Value Added ◽

System Optimization ◽

Energy System ◽

Mixed Integer ◽

Small Scale ◽

Full Potential ◽

Oil Supply

Significant amounts of biomass residues were generated in Indonesia. While untreated, residues emit greenhouse gases during the decomposition process. On the other hand, if efficiently utilized, these residues could be used to produce value-added products. This study investigates opportunities for harnessing the full potential of palm oil residues (i.e., empty fruit bunches, kernel shells, fiber, and mill effluent). As far as we are aware, the study is the first attempt to model the palm oil supply chain in a geographically explicit way while considering regional infrastructures in Sumatra Island, Indonesia. The BeWhere model, a mixed integer linear programming model for energy system optimization, was used to assess the costs and benefits of optimizing the regional palm oil supply chain. Different scenarios were investigated, considering current policies and new practices leading to improved yields in small-scale plantations and power grid connectivity. The study shows that a more efficient palm oil supply chain can pave the way for the country to meet up to 50% of its national bioenergy targets by 2025, and emission reductions of up to 40 MtCO2eq/year. As much as 50% of the electricity demand in Sumatra could be met if residues are efficiently used and grid connections are available. We recommend that system improvements be done in stages. In the short to medium term, improving the smallholder plantation yield is the most optimal way to maximize regional economic gains from the palm oil industry. In the medium to long term, improving electricity grid connection to palm oil mills could bring higher economic value as excess electricity is commercialized.

Download Full-text