The RSPO Secretariat was requested to revive the Task Force on oleochemicals and derivatives (herein called Oleo Task Force) in light of the severe tightness in the CSPKO, oleochemicals and their derivatives market. Recent analyses of the Annual Communication of Progress (ACOP) reports and the market data in PalmTrace shows clear evidence of a close match between supply and demand of CSPKO. In light of Shared Responsibility, we see that downstream RSPO Members face difficulties achieving their uptake targets for CSPKO. With the risk of losing momentum, the Oleo Task Force is asked to describe the challenges and come up with an action plan to address these.
Palm (PO) and palm kernel oil (PKO) based oleochemicals and their downstream derivatives are an important demand element with a strong relevance in end consumer product supply chains. The initial focus of RSPO was rightly on the food market applications and given the maturity of knowledge on supply chain mechanisms, the task force must also include relevant and appropriate supply chain issues in the application of oleochemicals and their derivatives. This is to ensure there are no barriers in the supply chain to maximise uptake and market transformation to certified sustainable products.
The Oleo Task Force shall be responsible to review supply chain issues specific to CSPKO and its derivatives and propose solutions to the Supply Chain Traceability Working Group and Market Development Standing Committee. The scope shall cover the interest of the entire downstream supply chain but explicitly exclude biodiesel.