Wilmar International

Wilmar International Limited(simplified Chinese:丰益国际;traditional Chinese:豐益國際;Pe̍h-ōe-jī:Hong-ek Kok-chè)is aSingaporeanfood processingandinvestmentholding companywith more than 300subsidiarycompanies.Founded in 1991, it is one of Asia's leadingagribusinessgroups alongside theCOFCO Group. It ranks amongst the largest listed companies by market capitalisation on theSingapore Exchange(SGX), being the second largest as of September 2010.It was ranked 211th in theFortune Global 500list in 2020.It was ranked 3rd in the World's Most Admired Company (Food Production) byFortunein 2019.
Wilmar International business activities includeoil palmcultivation,edible oilsrefining, oilseeds crushing, consumer pack edible oils processing and merchandising, specialty fats,oleochemicals, andbiodieselmanufacturing, grains processing and merchandising, and sugar milling and refining. In 2021, Wilmar placed 2nd on FoodTalks' Global Top 30 Specialty Oil Companies list.It has over 500 manufacturing plants and an extensive distribution network coveringChina,Indonesia,Indiaand some 50 other countries. The group employs a multinational workforce of more than 100,000 people.
Wilmar's merchandising and processing segment encompasses merchandising ofpalm oilandlaurics-related products, operations of palm oil processing andrefineryplants and crushing, further processing and refining of a range of edible oils,oilseeds,grainsandsoybean. Its consumer products include edible oils, rice, flour and noodles in China, Indonesia,Vietnamand India. Its plantation and palm oil mills segment engages in oil palmcultivationandmilling.
Wilmar has come under criticism for its exploitation ofchild labourandslave labour, as well as unsafe working conditions on its plantations amidst other worker mistreatment incidents.The company has also been exposed for its environmentally degrading practices, andforced displacementof poor populations, amongst other unethical behaviours.
Unileveris one of the main customers of Wilmar. Unilever and Wilmar are members of theRoundtable on Sustainable Palm Oil(RSPO) which brings together retailers, producers andNGOslikeOxfamandWWF.
Palm oil, extracted frompalm fruitpulp, is Wilmar's main product. Palm oil is the most widely used edible oil, and there are 42 million acres under cultivation worldwide. Commercial production has  helped many communities in Africa and South-east Asia tackle local poverty. However, environmentalists have been concerned that such widespread cultivation has led todeforestationandair pollution, and is a threat toendangered species. In 2013, Wilmar changed its approach and endorsedsustainabilityprinciples. As a part of this it sold its subsidiaryPT Asiatic Persadawhich for its involvement in land grabs.
Wilmar was founded byKuok Khoon HongandMartua Sitoruson 1 April, 1991and commenced operations as a palm oil trading company.
Forbes named Kuok the twelfth richest person in Singapore in 2021and Martua is the twelfth richest person inIndonesia.
In 2004,Friends of the Earth Netherlandsperformed a review of Wilmar's palm oil operations inSumatraRiau as undertaken by PT Jatim Jaya Perkasa. Wilmar had 20,800 hectares of land there and the operation was financed by the DutchRabobankand theInternational Finance Corporation. Satellite photos proved that in 2004, the plantations were on sea shorepeatrain forests, the depth of the peat being four meters, whereas such land is actually protected under Indonesian law. Nevertheless, in 1997 Wilmar received permission to plant there despite it being peat land. According to locals, the plantation endangers theSumatran tigerpopulation that inhabits the area, and this became a point of conflict with Wilmar in 2004. Soon after, Wilmar sold PT Jatim Jaya Perkasa and joined theWWFPalm Oil Association.
According to Friends of the Earth Netherlands, Wilmar International startsforest firesand violates the rights of local populations.In July 2007,Friends of the Earthand two local environmental organizations criticized Wilmar'sillegal forest fellinginKalimantan, in Indonesia.As a result of this campaign against Wilmar's projects inSambas,West Kalimantan, the company agreed to implement a number of new measures and policies.
In July 2013, a report published by the WWF which documented that Wilmar (as well as the Indonesian companyAsian Agri) were purchasing palm oil fruit which was grown illegally inTesso Nilo National Park, Sumatra.According to theRoundtable on Sustainable Palm Oil, both Wilmar and Asian Agri took immediate action to stop this illegal sourcing.
In October 2015, Wilmar and Sinarmas, reportedly involved with the case of forest fires in Indonesia that led to the island of Sumatra and Kalimantan burn and cause catastrophicsmog.
In 2018, aGreenpeace Internationalreportasserted that Wilmar International is "the biggest and dirtiest palm oil trader in the world".
In 2020, global campaign organisation Mighty Earth reported that Wilmar International was involved in cutting down of natural forests inside an oil palm concession in Indonesia's easternmost region of Papua, but Wilmar's investigation concluded that the deforestation is smaller than alleged and done bysmallholderfarmers.
According toFriends of the Earth, Wilmar andBidco Africathrough Bidco Uganda, have been involved in long running dispute over land with local communities.
According toThe Guardianin March 2015, the land grab issue has plagued the community of Kalangala for a number of years. In July 2011, residents awoke to "find yellow machines churning up her land and razing the crops she had grown in a bid to make way for palm oil plantations."Bidco Africaand Wilmar have made no recorded statement on these matters. Again according toFriends of the Earth International, the projects implications include: Forced displacement, poor labour standards, deforestation, and insecurity amongst other.The community have now taken the conglomerate to court.
In February 2016, theUnited Nations Development Programme(UNDP) received a petition from the Bugala Farmers Association inUgandarelated to UNDP's association with Bidco Africa Ltd.A complaint was also received by the UNDP's Stakeholder Response Mechanism (SRM) and Social and Environmental Compliance Unit (SECU).In May 2016,UNDPvisited Kalangala to further investigate the issues surrounding the matter.In November 2016, the UNDP faulted a decision inviting Bidco Ltd into partnership with the United Nations Development Programme's Business Call to Action in Uganda.
On 30 November 2016,Amnesty Internationalpublished a report into working conditions on the Wilmar International plantations and refineries in Indonesia. It alleged human rights abuses, including "forced labour, low pay, exposure to toxic chemicals and discrimination against women".According toAmnesty International, Wilmar International profited from 8- to 14-year-old child labour and forced labour. Some workers were extorted, threatened or not paid for work. Some workers suffered severe injuries from exposure toherbicidescontainingparaquat. Wilmar customers includeFAMSA,ADM,Colgate-Palmolive,Elevance,Kellogg's,Nestlé,Procter & Gamble,Reckitt BenckiserandUnilever. Wilmar palm oil may be used in popular products likeMagnumice-cream,Colgatetoothpaste,Dove (toiletries),Knorrsoup,KitKat,Panteneshampoo,Ariel, andPot Noodle.
On 5 December 2013, Wilmar committed to a No Deforestation, No Peat & No Exploitation Policy (NDPE policy)for both its own operations and third party suppliers.It promised to stop buying from suppliers who cleared forest, drained peat land, or exploited locals.This was lauded as a transformational step towards responsible and sustainable palm oil development.Preliminary analysis estimated that Wilmar's commitment would eliminate more than 1.5Gt CO2emissions in total between 2016 and 2020.
In 2015, Wilmar won the Special Recognition Award at the Singapore Apex CSR Awards 2015 organised by the Global Compact Network Singapore, Singapore Business Federation and The Business Times. It was hailed for being the first major palm oil player to step up to ensure its supply chain is de-linked from any forest destruction and human rights abuse.