Cargill sells palm oil business in Papua New Guinea
Cargill will sell off its palm oil holdings in Papua New Guinea (PNG) to focus on operations in Indonesia, reports the Star Tribune. The $175 million sale involves 62,000 ha of oil palm across three plantations and several mills
mongabay.com | February 26, 2010
"We believe there is more value for our shareholders and customers in focusing on Indonesia," said the company in a statement. "Our PNG oil palm plantations were the only investment we had in PNG. Since no other Cargill business is actively investing in PNG at this time, we could not build any synergies to increase the value of this investment."
The sale marks an end to a controversial run in PNG. Cargill was criticized by activists and local NGOs for environmental damage and social concerns.
Cargill has recently expanded palm operations in Papua, on the Indonesian half of New Guinea, but the Minnesota-based company still faces complaints similar to those that plagued it in PNG.
Palm oil is the world's highest-yielding commercial oil seed, making it a cheap source of vegetable oil, which is widely used in processed foods and cosmetics. But production has often come at the expense of tropical rainforests and carbon-rich peatlands, making the industry a target for green groups.
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