Coconut Oil Supply Chain Slides Toward Sustainability via P&G, BASF, Cargill Partnership

Companies that source coconut oil from the Philippines and Indonesia – the world’s two largest producers and exporters of coconut-based products – face several challenges: little or no economies of scale, lack of financing and training resources, and a rigid supply chain all serve to increase the farmers’ dependence on middlemen and perpetuates inefficient and unsustainable agricultural practices. Now, Procter & Gamble, Cargill and BASF are working together with German development agency GIZ to solve the problems by creating a sustainable certified and transparent supply chain of coconut oil in that area of the world.

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