Exclusive: Buyers shun major Malaysian palm oil producers after forced labour allegations

…Major palm oil buyers are seeking to block FGV Holdings and Sime Darby Plantations from their global supply chain after the United States banned imports from the two Malaysian producers…

U.S. food company General Mills said it has issued global ‘no buy orders’ for both the companies, and the sources said other buyers have also requested suppliers to reduce or exclude FGV and Sime Darby products for supplies entering not only the United States, but also Europe, Australia and Japan.

FGV and Sime Darby are two of the world’s biggest palm oil producers and both were banned by the U.S. Customs and Border Protection (CBP) last year over the alleged use of forced labour during production…

The caution from buyers is another blow to Malaysian palm oil, which has long had the reputation as being more sustainable compared to bigger rival Indonesia. The two countries together control nearly 85% of global production of palm oil - a ubiquitous commodity used in everything from cereal to soap...

Some buyers including Nestle, Unilever and Hershey had suspended FGV since 2018 after industry watchdog Roundtable on Sustainable Palm Oil (RSPO) found “exploitative” labour practices in the company...

Sime Darby said many of its key customers have expressed continued support and that it has engaged with independent firms to address the U.S. ban...