Clause (Module E) CPO Mills - Mass Balance Requirements E.1 Definition
E.1.1
Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB.
Rantau Panjang Factory is used RSPO supply chain of Mass Balance module because they still received FFB from the estate which has not been certified with RSPO that is GPI Smallholder Scheme / KKPA and Sungai Jernih Estate.
Status: Comply E.2 Explanation E.2.1
The estimated tonnage of CPO and PK products that could potentially be produced by the certified mill must be recorded by the CB in the public summary of the P&C certification report. This figure represents the total volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced should then be recorded in each subsequent annual surveillance report.
Estimates of CPO and PK produced by Rantau Panjang Factory obtained from the data of 12 months before the audit activities and have been described in this RC report. The details are as follows:
FFB: 131,523 ton (yield: 18.15 ton/Ha) CPO: 27,620 ton (OER: 21%)
Kernel: 6,576 ton (KER: 5%) Status: Comply E.2.2
The mill must also meet all registration and reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform or book and claim).
RSPO IT Platform member registration number: RSPO_ PO1000000320
Rantau Panjang Factory sold Certified Palm Kernel to each buyer period of 16 March 2016 to April 2017:
Date Buyer Quantity (ton)
28 October 2016 PT.Sinar Alam Permai 100
16 February 2017 PT.Sinar Alam Permai 499.36
Total 599.36
Rantau Panjang Factory did not perform delivery / sale of CSPO during the period of March 16, 2016 to April 2017 to outsiders or other unit either through palm trace
Status: Comply
E.3 Documented procedures E.3.1
The site shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:
a. Complete and up to date procedures covering the implementation of all the elements in these requirements;
b. The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the site procedures for the implementation of this standard.
Rantau Panjang Factory has had SOP of Supply Chain Products of RSPO Mass Balance which described the duties and responsibilities of each part; the identification of raw materials and products; and performs supply chain system. To improve the understanding of each Parties related to the supply chain, then the management unit is conducted socialization to the
SPO – 4006a.7 (August 2016) Page 50 relevant parties.
Based on document review in weighbridge room and interviews with the workers, it is known that the person responsible for the Supply Chain requirement has not been able to demonstrate the implementation of SCCS related to the delivery of certified products, as indicated by: Non-Conformity No. 2017.11 with Major Category
All Delivery Letter & Weight bridge Tickets are stamped "RSPO Certified Mass Balance", while data on the PalmTrace RSPO website is known that the RJF only sold 599.36 tonnes of certified kernels.
Based on Sales Contract, invoice and tax invoice for kernel sale to PT. Sinar Alam Permai dated 03 February 2017, it is known that the document is given the stamp "RSPO Certified Identity Preserved". This is not in accordance with the supply chain model applied by Rantau Panjang POM.
E.3.1 Status: Non-Conformity No. 2017.11 with Major Category E.3.2
The site shall have documented procedures for receiving and processing certified and non-certified FFBs.
There is no change in the procedure of receiving and processing of FFB listed in product traceability procedure on February 15, 2011.
Based on document verification and interviews with weighing staff, it is explained that the FFB from RJE, BYE, NAE, KRE, MJE is certified and will be marked as "RSPO certified" in Fruit delivery letters and Weigh Letter, while for FFB from SJE and GPP is FFB Non certificate and marked as "Non RSPO Certified". This indicates that the worker has understood the procedure regarding the separation of FFB received.
Status: Comply
E.4 Purchasing and goods in E.4.1
The site shall verify and document the volumes of certified and non-certified FFBs received.
Certified and non-certified FFB received period of 16 March 2016 to April 2017
Month FFB Receive
RSPO Certified Non Certified Total
16 - 31 Mar 16 4,028.64 322.86 4,351.50
April 16 6,873.10 579.22 7,452.32
May 16 7,768.14 534.85 8,302.99
June 16 9,547.55 865.40 10,412.95
July 16 7,954.59 502.59 8,457.18
August 16 9,521.06 496.29 10,017.35
Sept 16 18,052.23 922.99 18,975.22
Oct 16 27,734.28 2,011.76 29,746.04
Nov 16 19,686.47 1,143.54 20,830.01
Des 16 20,345.35 1,313.34 21,658.69
Jan 17 17,379.03 1,238.02 18,617.05
Feb 17 10,942.36 795.23 11,737.59
Mar 17 9,814.40 781.55 10,595.95
Apr 17 12,000.47 928.98 12,929.45
TOTAL 181,647.67 12,436.62 194,084.29
Status: Comply E.4.2
The site shall inform the CB immediately if there is a projected overproduction of certified tonnage.
FFB recieved and production of RSPO certified products do not exceed the production estimates in RSPO ASA-4 certificate attachments with the detail are:
Estimated production on ASA-4 certificate:
• FFB: 229,594 Ton
• CPO: 52,807 Ton
• Kernel: 11,480 Ton
Production during the period March 16, 2016 - April 2017:
• FFB: 181,647.67 Ton
• CPO: 36,878.94 Ton
• Kernel: 9,177.99 Ton Status: Comply E.5 Record keeping E.5.1
a. The site shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO and PK on a three-monthly basis.
b. All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system according to conversion ratios stated by RSPO.
c. The site can only deliver Mass Balance sales from a positive stock. Positive stock can include product ordered for delivery within three months. However, a site is allowed to sell short.(ie product can be sold before it is in stock.)
Rantau Panjang Factory has a monthly report explaining about FFB received, CPO Production, PK Production and delivery of CPO & PK. The detail of production data and product delivery from Rantau Panjang Factory as follows as:
Period Production CPO (ton) Production PK (ton)
RSPO Non Cert RSPO Non Cert
16 - 31 Mar 16 812.50 76.37 180.78 17.11
April 16 1,473.56 152.16 337.77 34.91
May 16 1,606.96 113.64 363.53 25.88
June 16 2,055.89 203.24 509.41 50.37
July 16 1,620.45 109.46 402.21 27.22
August 16 1,924.16 103.87 496.87 26.82
Sept 16 3,587.73 202.87 875.61 49.14
Oct 16 5,356.96 420.54 1,384.57 109.04
Nov 16 3,944.55 252.82 1,028.17 65.43
Des 16 4,103.65 285.48 1,109.55 76.89
Jan 17 3,558.88 282.30 1,049.34 82.35
Feb 17 2,271.01 181.57 592.63 47.27
Mar 17 2,020.73 166.19 229.32 16.73
Apr 17 2,541.91 232.48 618.23 56.57
Total 36,878.94 2,782.99 9,177.99 685.73 Period CPO delivery (ton) PK delivery (ton)
RSPO Non Cert RSPO Non Cert
16 - 31 Mar 16 76.32 186.13
April 16 1,319.71 243.74
May 16 1,984.12 412.93
June 16 2,958.30 785.11
July 16 1,200.00 417.67
August 16 2,360.59 400.00
Sept 16 3,640.35 540.03
Oct 16 3,258.63 100 1,170.61
Nov 16 6,755.55 711.90
Des 16 2,744.18 1,103.91
Jan 17 2,451.25 1,174.95
Feb 17 4,102.39 499.36 257.30
Mar 17 3,756.71 661.13
Apr 17 2,000.00 453.46
Total 38,608.10 8,518.87
SPO – 4006a.7 (August 2016) Page 52 Status: Comply
E.5.2
In cases where a mill outsources activities to an independent (not owned by the same organization) palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.
Rantau Panjang Factory does not perform activities of palm kernel crushing to the independent palm kernel crushers.
Status: Comply