Cargill and Palm Oil Production

Cargill History and Current Status

History

Cargill first became involved with palm fruit production in 1995, when it purchased its first palm plantation, P.T. Hindoli, on the Indonesian island of Sumatra. Cargill significantly increased its plantation holdings in 2005 when it became the majority shareholder of two additional plantations in Indonesia and three plantations in Papua New Guinea (PNG).

Prior to acquiring these plantations, Cargill conducted extensive research on their history. Cargill determined that all properties were originally developed according to all government requirements for licensing and approvals.

Current Status

Cargill today owns and operates five palm plantations through its business unit CTP Holdings. Two are in Indonesia: one on the island of Sumatra (P.T. Hindoli) and one on the island of Borneo in Kalimantan (Harapan Sawit Lestari). The other three plantations are in Papua New Guinea (PNG): Higaturu, Milne Bay, and Poliamba. Together, these plantations cover nearly 56,000 hectares (138,000 acres), which is less than 1/100th of the more than 6 million hectares dedicated to palm production in Indonesia and PNG.

Cargill currently has about 10,000 permanent and an additional 5,000 seasonal employees working on its palm plantations. It also supports approximately 17,000 “smallholders,” who are primarily small family farmers generally working one to four hectares of palm. Cargill sources approximately 30 percent of its crude palm oil in Indonesia and about 50 percent in PNG from smallholdings.

With its palm operations in Indonesia and PNG, Cargill estimates that it directly contributes to the economic welfare of more than 100,000 local inhabitants through the products and services it purchases to run its plantations. This adds to the economic development of some of the most isolated communities in the world.

Cargill currently operates palm oil refineries in Malaysia, India, Germany, Belgium, Russia, the Netherlands, and the United States. The crude palm oil (CPO) that is processed in Cargill’s refineries is sourced from Cargill's own plantations as well as from other plantations.

Through its business units, Cargill processes and markets palm products in Asia, Europe, and North America, and markets palm products in Africa and South America.

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