Thursday, May 6, 2010

Breaking News-RTRS-Unilever unit says Indonesia remains key palm oil supplier

JAKARTA, May 5 (Reuters) - The Indonesian unit of Unilever , the world's top palm oil buyer, on Wednesday said it gets 65 percent of its palm oil from Indonesia despite halting purchases from a unit of market leader Sinar Mas Group.
Unilever, which uses palm oil in such products as Dove soap and Ben & Jerry ice cream, cancelled its annual 20 million pound ($30.27 million) contract with one of its Indonesian suppliers, PT SMART in December. SMART is part of Sinar Mas Group, Indonesia's biggest palm oil producer.
The move prompted speculation that Unilever might cut palm oil purchases from other Indonesian suppliers, but a spokeswoman for the company said it was still buying from Indonesia.