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Exclusive: Ferrero to stop buying palm oil from Malaysia's Sime Darby over labour concerns

Reuters, Malaysia, 15 April 2022 - Italian confectionary giant Ferrero said it will stop sourcing palm oil from Sime Darby Plantation (SIPL.KL) after the United States found the Malaysian planter used forced labour, in a reputational blow for the palm producer and for Malaysia.

Labour practices across the Southeast Asian country have come under scrutiny in the past two years, with six companies including Sime Darby banned by U.S. customs over forced labour allegations. read more

Palm oil, the most widely used vegetable oil, is a key ingredient in Ferrero Rocher chocolates and Nutella spread, giving the iconic products their smooth texture and shelf life.

"On 6th April, we have requested all our direct suppliers to stop supplying Ferrero with palm oil and palm kernel oil sourced indirectly from Sime Darby, until further notice," Ferrero told Reuters by email.

"Ferrero will comply with the U.S. Customs and Border Protection's decision," it said.

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Source: https://www.reuters.com/business/retail-consumer/exclusive-ferrero-stop-buying-palm-oil-malaysias-sime-darby-over-labour-concerns-2022-04-15/

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