AAK on Palm Oil Production

September 8/Stockholm/Business Wire -- According to an AarhusKarlshamn (AAK) press release, the important and critical subject relating to the use of herbicides within the worldwide farming industry has led to many constructive public debates. Recently, this has concerned the production of palm oil and more specifically the use of the herbicide Paraquat in the cultivation of oil palms.

In relation to this AAK has stated the following:
Paraquat is one of the most widely used herbicides in the world today. AAK's view is nevertheless that concerted efforts should be made by all Palm Oil Producers, particularly all members of the Roundtable for Sustainable Palm Oil (RSPO members) to work towards minimizing or phasing out Paraquat as soon as possible. As one of the world's major Specialty Fats and Food Ingredient players, AAK buys large quantities of vegetable oils derived from several different raw materials, palm oil being one. This is then refined and often further processed at AAK's facilities around the world into a broad spectrum of products.

AAK purchase palm oil from a number of large and respected suppliers, one of them being United Plantations, who is widely recognized for pioneering within sustainable agriculture and remains at the forefront of the developments in terms of environmental improvements. "Nevertheless, the supply of palm oil from United Plantations, only represents a smaller share of our total palm oil supply chain," says Arne Frank. United Plantations are owned by one of the main share holders of AAK. However, supplies from United Plantations are dealt with as per "arms length" principles and always based upon strictly professional decisions to the best interest of AAK.

Work environment is a part of our supplier code of conduct, Frank continues. "Suppliers shall offer a safe working environment for all employees. Adequate health and safety procedures shall be implemented. As a minimum, suppliers shall comply with all local and national health and safety legislation. AAK audits all of its suppliers on a regular basis, and we follow up if anyone does not follow rules and regulations".

Frank continues, "We have just completed the production of our first sustainability report." It is now available at www.aak.com.

From the September 20, 2010, Prepared Foods E-dition