‘Alas, more allegations of forced labor practices in Malaysia!’
Ferrero, a chocolate giant from Italy, confirmed the decision to stop taking palm oil from Sime Darby Plantation Malaysia after the US customs service found it was practicing forced labor.
According to Ferrero's official statement, they complied with U.S. Customs and Border Protection decisions, and have asked all of its direct suppliers to stop supplying palm oil and palm kernel oil sourced indirectly from Sime Darby until further notice.
The latest ban on Sime Darby is the 6th for companies in the Southeast Asian country in two years over allegations of forced labor practices by US customs.
Although Ferrero bought only a small amount of oil from Sime Darby, the suspension decision was in line with Hershey Co and General Mills Inc and it indirectly tarnished the reputation of companies in Malaysia which are flanked by the issue of forced labor practices against foreign workers.
In response, Sime Darby stated that they have taken every step in upholding human rights and all stakeholders are committed in ensuring sustainability in its leadership in the industry.
He added that they also constantly communicate with all key stakeholders, especially customers who have their own commitments, besides also stating that Ferrero is not their customer.
As far as I know, palm oil is the main vegetable oil in Ferrero Rocher and Nutella chocolate recipes.
In addition, palm oil is one of the cheapest and fastest growing vegetable oils in the world, which can also be used in the manufacture of cosmetics.
However, the industry has faced charges of forced labor practices in recent years, especially in Southeast Asian countries, with almost 80% of immigrant workers working in the industry in Malaysia.
