Monday, December 14, 2009

Breaking News-RTRS-RPT-Unilever cuts palm oil supplier ties after report

LONDON, Dec 11 (Reuters) - Consumer goods company Unilever , the world's largest user of palm oil, has suspended purchases of edible oil from Indonesian group Sinar Mas on concerns over rain forest destruction.
Unilever, which uses palm oil in such products as Dove soap, Ben & Jerry ice cream, and margarines like Stork, cancelled its annual 20 million pound ($32.6 million) contract with Sinar Mas after a critical report by environmental group Greenpeace.
Anglo-Dutch Unilever said on Friday it was suspending purchases from PT SMART , which is part of Sinar Mas, until the Indonesian group could give proof that none of its plantations was contributing to the destruction of rain forests.