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SA Mag - Issue 2 - H&K FEATURETRANSCRIPT
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Hudson and KnigHt
W O R L D C L A M O U R f O R
Pa L Moi L
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Edible oil production is a global essential, and palm oil an increasingly significant player in the fight against world poverty. It is also attracting controversy. Jonathan Pennefather is General Manager of South Africa’s leading refiners Sime Darby Hudson and Knight, whose Boksburg state of the art refinery is the only one in South Africa to hold international blue chip food safety accreditation.
Hudson and Knight fEATURE
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World demand for palm oil is escalating. Consumption is rapidly exceeding production and crude palm oil prices are
approaching record levels.Compared with the year 2000, demand
is predicted to more than double by 2030 and triple by 2050. A continuing upswing seems unstoppable.
It is a trend due largely to the acceptance of palm oil as a viable alternative to artificially ‘hardened’ oils in response to worldwide ‘Trans Fats’ anxieties.
More than two thirds of palm oil production is used in food manufacturing; from margarine and chocolate to cream
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cheese and frozen chips. Palm oil is also widely used in cosmetics and detergents and more recently as feedstock for the production of biodiesel.
Sime Darby, Malaysia’s largest listed plantation company and the world’s number one listed palm oil originator accounts for approximately seven per cent of global palm oil production. And Sime Darby Hudson and Knight, their South African subsidiary, is the country’s leading producer of premium bakery fats, frying oils and bulk industrial fats.
Its Boksburg state of the art refinery and manufacturing facility is the only one in the country to hold the coveted ISO22000 blue chip food safety accreditation, an achievement and distinction which General Manager Jonathan Pennefather says means “we deliver what it says on the label”.
roadfreigHt Logistics roadfreight Logistics is a leader in supply chain Management for Hudson & Knight leading the way in distribution and Warehousing with a fleet accurately reflecting the nature of our business.
We have three Warehouses as well as three refrigerated rooms and have been providing world class solutions to all Hudson & Knight’s Logistical requirements since 1992.
“In the customers’ eyes, this establishes a quality standard which enables them to place a reliance on us, a very high degree of trust and certainty. I think it establishes in their minds a sense of security and assurance of a quality standard that nobody else has achieved in this country.”
ISO 22000 accreditation, the top international food safety standard, took
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18 months of hard work, planning and implementation. This achievement marks in a sense, the end of one journey and the beginning of another. Hudson and Knight has embarked on a strategy of constant improvement as well as continuous monitoring and assessment, both internally and externally.
“These factors are important when you are dealing with ‘Blue Chip’ clients such as Unilever and Nestle, who have a very strong emphasis on high quality,” says Pennefather.”Some of the large local food manufacturers take their lead from European standards, and as exporters to those markets, food quality of the highest possible standard is a pre-requisite. It’s not only the big guys; many of the smaller guys are equally concerned about securing the highest standards.”
Sime Darby Hudson and Knight uses both seed and tropical oils in many of its various product applications and palm oil accounts for approximately two thirds of Sime Darby Hudson and Knight’s raw material consumption.
Palm is more cost effective in certain applications and is widely regarded as a notably efficient crop, producing the highest energy output-to-input ratio. In absolute terms, palm produces more oil per hectare under cultivation than any other edible oil. Furthermore it requires the lowest levels of pesticides, fertilizer and fuel for each unit of oil produced.
And as living standards improve, in developing countries, the oil consumption per capita increases proportionally. Palm oil plays an important role in meeting this increase in demand, contributing towards
Hudson and Knight fEATURE
Javelin Trucking is a bulk transporter of hazardous chemicals, edible oils, industrial and road grade bitumens and other petrochemicals throughout sub-sarahan Africa with depots in Mozambique and SA. The company is also extensively involved in marine
bunkering, supply of bitumen, and logistics related project management.JAVELIN HAS BEEN A PROUD TRANSPORTER FOR HUDSON & KNIGHT SINCE 1986
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global food security. It is also a crop that provides a solution to overcoming poverty in the rural growing areas, through the successful application of government sponsored social upliftment programs.
But palm oil is also a political hot potato. Environmentalists claim that the cheapest cooking oil in the world is secured partly on the back of the destruction of the wildlife-rich forests of Indonesia and Malaysia.
It is a charge strongly denied by the palm oil industry who refer to “anti-palm lobbyists sponsored by American and European agricultural protectionists, hiding behind the guise of respected environmental groups.”
One claim alleges that “at times thirty square miles are said to have been felled daily in a burst of habitat destruction on a scale and speed almost unimaginable in the West.”
If this were true counters the industry, there would be no natural forest left in either Malaysia or Indonesia.
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In Malaysia for example, the total land area under palm cultivation was ‘capped’ many years ago at 4 million Ha of its total 33 million Ha land mass. With regards to the Greenhouse Gas effect, the 4M hectares of Malaysian plantations ABSORB more CO2 and RELEASE more O2 than the entire 17 million hectares
under cultivation in Britain.
At the UN Climate Change Conference held in Copenhagen at the end of 2009, “World Growth”*, a bona fide, non- partisan NGO presented a report entitled: “Collateral damage: how the
bogus campaign against palm oil harms the poor”. The chairman of “WG” Mr Alan Oxley stated the following during an interview:
“Greenpeace, Wetlands International and Friends of the Earth’s anti-palm lobby was ‘immoral’ because their actions hurt the potential income of some five million oil palm planters in Malaysia and Indonesia”.
Its findings indicated that palm oil production, a sustainable vegetable oil and essential food staple, raises the living standards and reduces poverty in developing countries.
Six years ago producers and buyers set up the Roundtable on Sustainable Palm Oil (RSPO) to develop standards for sustainable palm oil production. The principles and criteria include commitments to preserve forest, wildlife and to manage local communities responsibly, and from outset Sime Darby has been a lead member.
As the world’s biggest oil palm grower, Sime Darby intends to be fully certified as a ‘green’ palm oil producer in the first half of 2011. “A large portion of the Sime Darby Group’s resources has been directed to
As living standards improve, in developing countries, the oil
consumption per capita increases proportionally. Palm oil plays an important role in meeting this
increase in demand
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The health debate on fats and oils will continue ad-infinitum, with interested parties continuing to lobby for their product. The most reasonable approach is that the human body needs all types of fat in moderation. Depending on the food application both saturated and unsaturated fats provide healthy alternatives.
The current scourge in the debate is Trans Fatty Acids or ‘Trans Fats.’ These emerged as scientists began substituting partially hydrogenated vegetable oils for saturated fats in processed foods. For the first time this added relatively large amounts of Trans fatty acids to the
typical diet: into French fries from a number of fast food chains or certain margarines and baking fats.
Trans fatty acids influence total cholesterol balance by increasing LDL cholesterol levels. In other words, Trans fatty acids are detrimental to cardiac health.
achieving this,” says Jonathan Pennefather.“Fully-certified sustainable palm oil producers will provide proof that the industry is capable of producing palm oil in a responsible and sustainable manner. The board has set the target of having all of the Groups 60 mills and more than 200 estates, largely in Malaysia and Indonesia, audited and accredited by RSPO by 2011; this equates to 2.5 million tonnes of palm oil a year, seven per cent of the world’s total”
Palm oil accounts for approximately two thirds of Sime Darby Hudson and Knight’s production input and sunflower oil the balance. Most of the sunflower oil is produced in South Africa, but price and harvest considerations can trigger imports, chiefly from Argentina or Europe. In 2008/9 large quantities of seed were imported into this country from the Ukraine by an SD H & K competitor.
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We have a high awareness of the Trans fatty
acids issue and have been actively eliminating them from our products
Hudson and Knight fEATURE
FR Waring enjoys an enviable reputation as one of the foremost trading organisations in Southern Africa. The company has been successfully trading and shipping various agricultural commodities and by-products for more than 80 years.
FR Waring was one of the fi rst organisations to offer Palm Oil and it’s derivatives into the South African market. The organisation is today one of the largest privately owned, independent trading houses specialising in the trade of oils and fats in Southern Africa.
In addition to considerable expertise in International Trading, the Group, through it’s local subsidiary acts as stockists and distributors of various oils and fats into the downstream end user market in South Africa and the region. We look forward to hearing from YOU, prospective new clients and suppliers, who would like to take advantage of the FR Waring network.
F R Waring( I N T E R N A T I O N A L ) ( P t y ) L t d
57 - 6th Road, Hyde Park, Sandton, Johannesburg.P.O. Box 681, Parklands, 2121, Johannesburg, South Africa.Tel: +27 11 759 0840 | Fax: +27 11 325 6937 e-mail: [email protected] | www.frwaring.co.za
Trading Products from the Earth to the World
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“We have a high awareness of the Trans fatty acids issue and have been actively eliminating them from our products. TFA’s are on the verge of becoming outlawed in Europe and the USA and South Africa will no doubt follow suit” says Jonathan Pennefather.
“The other concern for consumers is the fatty acid profile; i.e. the proportion of Monounsaturated, Polyunsaturated and Saturated fats in a particular oil or fat. To some extent the jury is still out on the subject of which fats are ‘good’ and which are ‘bad’. This information now has to be displayed on the label, in terms of the new legislation and consumers are now looking at this far more closely than in the past.”
His own view on the choice of fat content and a healthy life style? “Moderation in all things. A chocolate bar now and again is not going to be detrimental to your health. Having a whole load of it will. And I think that’s the same with everything.”eNd
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Physical Address: Sime Darby Hudson and Knight 511 Commissioner Street Boksburg 1460
Postal Address: Sime Darby Hudson and Knight P.O. Box 1053 Boksburg 1460
Tel: +27 (0) 11 898 5300 Fax: +27 (0) 11 898 5438 Email: [email protected]
www.hudsonandknight.com