First RSPO IP-Certified Sustainable Palm Oil Shipment to China Led by Yili Group and Yihai Kerry

Asia’s leading dairy brand Yili Group in partnership with China’s largest palm oil trader Yihai Kerry spearheaded the first shipment of RSPO-Identity Preserved (IP) Certified sustainable palm oil to China, marking a milestone in advancing the country’s sustainability agenda.

SHANGHAI, Nov. 25, 2024 /PRNewswire/ — Representing a significant milestone for the Chinese market, the very first shipment of RSPO Certified Sustainable Palm Oil (CSPO) arrived at the Shanghai port today. This pioneering effort was spearheaded by Inner Mongolia Yili Industrial Group (Yili Group), Asia’s leading dairy brand and one of the top five globally, in partnership with Yihai Kerry Arawana Holdings Co., Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.

A total of 750 tonnes of Certified Sustainable Palm Oil, certified under the Identity Preserved (IP) supply chain model, marks the initial batch of Yili’s palm oil procurement for 2024-2025. The IP model ensures that certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability. This delivery is particularly notable as it follows the August 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.

Palm oil is a crucial ingredient in Yili’s ice cream production, with the company having consumed 35,000 tonnes in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model. This latest development signifies Yili’s drive to expand its use of RSPO-IP certified palm oil and underscores the group’s commitment to a deforestation-free supply chain by 2030.

“We are very proud of this milestone achievement, not just for Yili Group, but also for the Chinese market as it represents a major step in realising China’s commitment to sustainability,” said the spokesperson from Yili Group. “By sourcing RSPO Certified sustainable palm oil, Yili is demonstrating our dedication to responsible sourcing and combating deforestation within our supply chains.”

Yili’s 2023 Sustainability Report outlines its goal to increase RSPO-IP Certified palm oil by 50 tonnes annually, with a target of purchasing 650 tonnes by 2030. Yili has also committed to eliminating deforestation in its palm oil, soy, and pulp and paper supply chains by 2030.

Zhang Daopeng, Manager of Public Affairs Department from Yihai Kerry commented, “As China’s leading palm oil trader, Yihai Kerry is dedicated to setting an example of best practice. With RSPO IP Certification achieved, we are opening the door to stronger partnerships with industry leaders in pursuit of shared sustainability goals.”

Driving China’s Uptake of Certified Sustainable Palm Oil

The arrival of this shipment signals a positive step forward for China in increasing its uptake of RSPO Certified palm oil. The growing commitment among Chinese companies to sustainability is clear, and this development is expected to accelerate demand for sustainable palm oil in the Chinese market.

China is the world’s second-largest palm oil importer. Currently, RSPO has over 440 members in China, reflecting a steady increase in engagement across the industry. The commitments to sourcing CSPO products into China also featured prominently at the recently concluded RT2024. Yili Group signed an additional sustainable sourcing agreement with Yihai Kerry, demonstrating its ambition to build a global green value chain for palm oil and enhanced partnership.

Joseph D’Cruz, CEO of RSPO, praised the milestone, stating, “The arrival of the first RSPO-IP Certified shipment in China is a significant step forward in advancing China’s sustainability agenda. It reflects the growing leadership and commitment of companies like Yili Group and Yihai Kerry in supporting a responsible and equitable palm oil supply chain. RSPO remains dedicated to working alongside Chinese enterprises as they take bold steps towards achieving their sustainability goals.”

This historic shipment demonstrates the collective efforts of industry leaders to align with China’s evolving sustainability priorities, marking the beginning of a new chapter for sustainable palm oil in the country.

About RSPO:
The Roundtable on Sustainable Palm Oil (RSPO) is a global partnership to make palm oil sustainable. Formed in 2004, the RSPO is a multi-stakeholder non-profit organisation that unites members from across the palm oil value chain, including oil palm producers, palm oil processors and traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-governmental organisations (NGOs), and social or developmental NGOs.

As a partnership for progress and positive impact, the RSPO facilitates global change to make the production and consumption of palm oil sustainable. To inspire change, we communicate the environmental and social benefits. To make progress, we catalyse collaboration. To provide assurance, we set the standards of certification.

The RSPO is registered as an international association in Zurich, Switzerland, with main offices in Malaysia and Indonesia, and offices in China, Colombia, Netherlands, United Kingdom and the United States.

About Yili Group:

Yili ranks among the Global Dairy Top 5 and has been No. 1 in Asia for 11 consecutive years. Yili is also China’s largest dairy producer, offering the largest number of products. Thanks to its exceptional product quality, leading service capabilities and comprehensive capacity for sustainable development, Yili is well-respected and received among global event organisers, national and local governments and the public. Yili was selected to serve as the exclusive supplier of dairy products and services at major international events, including the Beijing 2008 Olympic Games, the Expo 2010 Shanghai China, the G20 2016 China, the 2019 7th CISM Military World Games, the Beijing 2022 Winter Olympic Games, and the Asian Games Hangzhou 2023. Yili has also become a partner of the World Economic Forum, the Boao Forum for Asia, and the World Internet Conference.

About Yihai Kerry :

Yihai Kerry Arawana Holdings Co., Ltd.is an important agricultural and food products processing enterprise in China.The Company Founder is Mr Robert Kuok, a well-known patriotic overseas Chinese, and his nephew Mr Kuok Khoon Hong.

Till now, Yihai Kerry has over 30,000 employees, 80 strategic locations in China with several plants under construction in new locations. It is mainly involved in industries such as oilseed crushing, edible oil refining, specialty fats, oleochemicals, processing of corn, wheat and soybean, sustainable multi-stage processing of rice, food and beverage, grain and oil technology R&D.

Famous brands under Yihai Kerry include “Arawana” “Olivoila” “Orchid” “Wonder Farm” “Neptune” “Fengyuan” “Golden Delicious” “Reyland” “Jiejin 100” , etc. Its products cover fields like small package edible oil, rice, flour, fine dried noodles, rice noodles, soymilk, special grains and oils for the catering industry, food raw and supplementary materials, and oleochemicals. The Group has also established a distribution network with wide outlets, point and sphere integration, and unimpeded channels in the country, to serve the consumers comprehensively.

Looking ahead, Yihai Kerry will continue to respond to the industrial and economic policies of the state, exert own advantages in brand, scale, R&D and talent, etc., and adhere to the R&D philosophy of nutrition, health and safety; it will combine the latest research results of food and nutrition and other disciplines in the country and abroad with the dietary characteristics of the Chinese people, provide on an ongoing basis the people with quality grain and oil products that are more nutritional, healthier and safer, serve the country by developing industry, and contribute to the growth of the grain and oil industry in China.