In what products does Fazer use palm oil?

At Fazer, palm oil is used in the production of some laminated coffee breads, biscuits, confectionery fillings and margarines.

Why does Fazer use palm oil?

Palm oil has very good technological properties and that’s why it’s quite commonly used in the bakery and food industry. To create the right texture, solid fat is required in Fazer’s products like laminated coffee breads, biscuits and in some confectionery fillings. Palm oil is used in several fat blends as the solid part together with liquid oils. Otherwise fat blends would be too soft or liquid.

Fat blend = A mixture of various fat components (e.g. margarines and filling fats).

Is there a way to replace palm oil? Does Fazer have plans to replace palm oil?

Fazer is constantly putting R&D efforts to develop sustainable and healthy food products. In the future, Fazer will investigate ways to increase the use of fats, oils and other ingredients with better environmental footprint and nutritional quality than palm oil.

At Fazer we see that using palm oil is the best option in some of our products. When using palm oil we always support sustainable palm oil production through purchasing the RSPO-certified palm oil.

Palm oil has very good technological properties and the production process of margarines has been modified during the past years in order to avoid trans fats. This shift has led to an increase in use of palm oil as it is a naturally solid fat. As palm oil is the highest-yielding vegetable oil crop, replacing it with other vegetable oil would mean that much more land would be needed for the cultivation of other tropical oil crops such as coconut or shea.

At Fazer we evaluate the use of different oils and fats on a regular basis, taking both nutritional and technological aspects into consideration. Here few examples where we have modified the recipes:

  • The palm oil used for deep-frying donuts was replaced with rapeseed oil in 2012.
  • In several yeast dough palm oil has been replaced with rapeseed oil already years ago.
  • Some biscuits are baked without palm oil, such as Jyväshyvä oatmeal snack biscuit.

What is Fazer doing to ensure sustainable palm oil purchasing?

  • Fazer has been a member of the global RSPO (Roundtable on sustainable palm oil) organisation since 2004.
  • Fazer uses only certified sustainable palm oil.
  • Fazer uses only segregated palm oil in nearly all of  its products in the Nordic and Baltic countries meaning that certified palm oil kept separate from non-certified palm oil throughout the value chain.
  • Fazer submits an annual report to RSPO on progress. You can read more here.

What is RSPO?

Roundtable on sustainable palm oil is a not-for-profit international membership organisation working to improve the sustainability of global palm oil production and use.

What do you mean with increased traceability?

Fazer aims for increased traceability by complying with the supply chain option hierarchy that has been set in the commitment:

1. Segregated supply chain system
2. Mass balance supply chain system if segregated palm oil is not available taking availability, quality and market conditions into account.
3. Book & Claim / Smallholder or GreenPalm certificates in the markets and products where segregated palm oil is not available.

This means that Fazer will continue using certified sustainable palm oil but improve traceability by increasing the purchases of certified segregated and mass balance palm oil instead of GreenPalm certificates.

Could Fazer purchase only segregated palm oil?

The challenge is that today not all fat and oil suppliers can provide palm oil as segregated in all geographical areas where Fazer operates. In practise this means our operations in Russia where there is not sufficient availability for segregated palm oil. That’s why we first aim for mass balanced sustainable palm oil in Russia and during the transition period we use the Book & Claim method with increased support to smallholders.

What was the conclusion from the previous palm oil commitment period 2014-2020?

Fazer did not reach the target set for 2020 of all palm oil being Segregated, as our operations in Russia still use the Book and claim supply chain model. In the Nordic and Baltic countries, we use nearly 100% Segregated palm oil. In 2020, we increased our support to smallholder farmers by purchasing 50% of the Book & and Claim credits as smallholder credits. With such support smallholders can increase their yields, better enter international markets, improve their livelihoods and reduce the risk of land conversion.