AAK Enters Partnership with Nestlé and Musim Mas to Address Deforestation

AAK has entered a partnership with Nestlé, the world’s largest food and beverage company, and palm oil corporation Musim Mas to address deforestation outside of palm oil concession areas in Aceh, Indonesia. The five-year program will positively impact some 1,000 independent smallholders. Aceh is a priority landscape as 87% of the Leuser Ecosystem – a protected area important for both biodiversity and carbon storage – lies within the province.

“This partnership is an important part of AAK’s sustainable sourcing approach,” says Anne Mette Olesen, Chief Strategy & Sustainability Officer at AAK. “Engaging with partners and other stakeholders in the supply chain is fundamental, and only together can we make the global palm oil industry fully transparent and sustainable.”

AAK and Nestlé will initially provide funding for the first two years of the program in which smallholders will be enrolled into Musim Mas’ smallholder program. In a “train the trainer” approach, government extension officers will be trained in good agricultural practices and NDPE (No Deforestation, No Peat, and No Exploitation). The extension officers will in turn train oil palm smallholders.

Expected outcomes of the program are increased yields and earnings for the smallholders, reducing the incentive to encroach into protected areas as a way of increasing their income. As the majority of deforestation in Aceh occurs outside plantation concession areas, these types of programs are vital.

“Engaging with stakeholders in the most sensitive landscapes and focusing on deforestation outside concession areas is crucial,” says Caroline Westerik-Sikking, Global Manager Sustainable Oils at AAK. “We believe that this partnership can significantly contribute to the protection and preservation of an important landscape and have a positive impact on the livelihoods of the smallholders involved.”