Cargill says to study SMART audit, decide how to proceed

Tue Aug 10, 2010 6:07am BST

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 JAKARTA, Aug 10 (Reuters) - Agribusiness giant Cargill Inc
[CARG.UL] said on Tuesday it would study the findings of an
audit of Indonesian palm oil giant PT SMART Tbk (SMAR.JK) soon
to decide how to proceed.
 SMART said that the audit of its palm oil operations showed
it was not responsible for destroying primary forests and
orangutan habitats, disputing accusations by Greenpeace.
[ID:nJKB003849]
 Greenpeace has said in a series of reports released since
last year that the firm was clearing peatland and high
conservation value forests, which shelter endangered species
and trap vast amounts of climate-warming greenhouse gases.
 The controversy has already cost SMART business. Two big
buyers of palm oil, Unilever (ULVR.L) and Nestle (NESN.VX),
have already dropped SMART as a supplier, while Cargill has
threatened to stop buying from SMART depending on what the
audit shows.
 "We've been monitoring this process closely and encouraging
both SMART & RSPO to be transparent in the process. We have not
yet had the opportunity to review these audit results in
detail. We will be reviewing the results & discussing then with
SMART in the next few days to decide how we wish to proceed,"
said Cargill spokeswoman Marethe Sambe in a telephone text
message to Reuters.
 (Reporting by Sunanda Creagh; Editing by Sara Webb)




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