How RSPO Certification Can Improve Palm Oil Companies Profitability

It is increasingly clear that RSPO certification is positively correlated with the increase of a palm oil company's profitability. The existing evidence has encouraged many palm oil companies to have RSPO certification by implementing sustainable business processes. 

The following are two explanations of how the RSPO certification can improve Palm Oil Companies profitability:

Selling Crude Palm Oil at A Higher Price

Referring to Dr Steffen Preusser's paper on 34 palm oil companies certified by the Roundtable on Sustainable Palm Oil (RSPO), companies with more than 40% RSPO certified growing area are able to sell crude palm oil at the global market up to $690 per metric ton.

It is 6.84% higher than the normal average price of the crude palm oil. Compared to companies that are only 20% or less certified, their average crude palm oil price is only around  $ 570 per metric ton.

Upgrading Operational Indicators to The Max

In addition to increasing the value of its products, initiating RSPO certification drives palm oil companies to intensify their operations, documentation systems, employment relationships and other internal factors. As a result, it goes to the profitability increase. 

The World Wildlife Fund's 2012 report corroborates the fact that companies with a greater proportion of RSPO-certified planted areas experience higher yields and oil extraction rate. 

Key Takeaway

To sum up, sustainability and profitability are two essential things which in fact can be positively correlated to one another. 

This is also an impetus for palm oil companies to continue applying sustainable systems in operating their business.

Embark your journey to success with Nimbly, a digital audit tool which helps your company to simplify all business processes and achieve maximum profit. 

About Nimbly

Nimbly transforms manual operations audit processes into app-based checklists for front-line workers to generate reports instantly, centralize insights in real-time, and ensure thorough issue resolution.

Table of Contents

FREE eBook to upscale your Agribusiness

Read this article in your native language!

No Fluent Forms Found

Related Articles

June 28, 2021
How to Tackle Biodiversity Loss Issues in the Global Food System
In the past 50 years, natural ecosystem conversion for agriculture and farming has lead to significant biodiversity loss. How can we prevent this from happening?
October 14, 2021
What you need to know in Grain Bin Maintenance
Grain bin maintenance is important to keep the structure and grain supplies of good quality. Here is the maintenance guide and digital checklist to you.
July 30, 2021
Impact of COVID-19 Pandemic on Smallholder Farmers
The COVID-19 pandemic has had a negative impact on all agricultural sectors including small farmers. According to a survey conducted by TechnoServe's agriculture program teams from July to November 2020 in 10 countries, the following are the impacts of the COVID-19 pandemic on small farmers.
No more content to load.

Let's have a chat !

Offices

[email protected]
+65 9066 9695
+62 8212 3069 155
+1 214 736 3470
+63 950 172 5155
© 2021 – 2022 , Nimbly App