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.
According to latest one year FFB supply data (May 2015 – March 2016), total of incoming FFB was 227,055 tonnes, with detail FFB sources as follows:
Certified sources:
1. Muara Kandis Estate (certified): 77.159,03 tonnes (36.02%) 2. Muara Tawas Estate (certified): 71.927,69 tonnes (33.58%) Non Certified sources:
3. KKPA Pendawa (KUD Sadar Sejahtera): 38,973.06 (18.20%) 4. KKPA Pendawa (KUD Pandawa Sakti – KTPA): 106.67 (0.05%) 5. Farmer Group “Mandiri” (KTMA): 1,960.55 (0.92)
6. Farmer Group of “Tugu Sempurna”: 11,361.61 (5.30)
7. Commercial Loan Credit Farmer Group (KTNA): 5,252.56 (2.45)
The above mentioned supply data shows that mill has been taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. Under that scenario, the mill claim the volume of oil palm products produced from processing of the certified FFB as Mass Balance Scheme.
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.
The estimated tonnage of CPO and PK products that could potentially be produced by mill had been recorded by the CB in the public summary of the initial audit 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:
- Estimated production of CPO was 34,724 tonnes - Estimated production of PK was 8,358 tonnes
The actual tonnage produced will be recorded in annual surveillance report of period ASA-01. It is recorded that since 18 Mei 2015 until ASA-01 audit, actual production of CPO was:
- Received FFB: 227,055 tonnes - CPO production: 34,047.76 tonnes - PK production: 8,449.01 tonnes
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).
Muara Kandis Mill facility has been registered in RSPO IT platform RSPO (e-trace) and has been updated regularly according to certification period. For ASA-01 period, registration code is:
- Company name: PT Djuandasawit Lestari (Muara Kandis Mill)
- Member ID: RSPO-PO1000001631 - Username: izulifkar709
According to e-trace account verification of Muara Kandis Mill, it is known that during latest certification period (May 2015 – March 2016), there was no certified Crude Palm Oil (CPO) and certified Palm Kernel (PK) transaction.
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.
Mass balance supply chain procedure available in:
SOP number PT DSL-MKNM/SOP/24 regarding SOP of Supply Chain for CSPO product with Mass Balance system, issued May 16, 2014. SOP contains complete procedure of implementation of SCCS requirement according to RSPO, officials in charge who have overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements.
SOP number PTDS-MKNM/SOP23 issued on March 10, 2014 regarding Reporting of Certified CPO Product RSPO which regulates reporting procedure of Mass Balance Implementation as well as three months balancing report (three monthly bases).
The SOP also completed with job description and organization structure of SCCS implementation in Muara Kandis Mill, starting from security check, weighbridge operator, production assistant, until CPO dispatch. All related staffs have been trained as seen by training records dated October 31, 2015, attended by 14 participants: Lab Assistant, Administration head, security Head, Shift analyst, Grading, Weigh Bridge Operator, Production clerk, Dispatch Operator, administration clerk, manager, and senior production assistant.
Status: Comply E.3.2
The site shall have documented procedures for receiving and processing certified and non-certified FFBs.
Sighted that Muara Kandis Mill Facility has had procedure on verification of incoming certified and non certified FFB:
SOP number PT DSL-MKNM/SOP/24 regarding SOP of Supply Chain for CSPO product with Mass Balance system, issued May 16, 2014. SOP contains complete procedure of implementation of SCCS requirement according to RSPO, officials in charge who have overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements.
SOP number PTDS-MKNM/SOP23 issued on March 10, 2014 regarding Reporting of Certified CPO Product RSPO which regulates reporting procedure of Mass Balance implementation as well as three months balancing report (three monthly bases).
The procedure covers procedures of certified FFB processing, including job description of related staffs:
- Security officer: Verifiy FFB deliveries slip to check source of FFB. Only short listed supplier can deliver FFB to mill. FFB supply from certified source should have “RSPO certified” mark.
- Weighbridge operator should verify the incoming FFB with list of certified supplier. FFB from certified block and estate marked with “certified” stamp. As guidance, mill management regularly updates the list of certified and non certified supplier.
- Production process, refers to Mill Processing SOP - Production Admin input amount of certified FFB - Cutoff date is 08.00 – 08.00 next day
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.
Sighted in document verification that Muara Kandis Mill Facility has verified and documented the volumes of certified and non- certified FFBs received, as seen in the following records:
- FFB delivery slip from each estate, that contain information: company name, Estate name, Division, Truck Police number, slip number, Complex, block, FFB volume, estimated weight, Driver name, signature of transportation clerk, signature of driver.
As example: Delivery slip issued on march 28, 2016 from Muara Tawas, Division 3 block K34, 278 pieces of FFB, weight 5,250 kg, slip number 2821/TBS/III/B/2016/21797, truck police number BG 8049 GL, Driver name: Hombing, signature from transportation clerk and assistant
- Weighbridge card which contains information of: slip serial number, date, hour, and weight on first and second measurement, supplier estate, division, delivery note, transporter, driver name, and weighbridge clerk.
As example: Weighbridge slip number A001908 dated March 28, 2016 from Muara Tawas Estate, Division 3, 278 pieces of FFB, Driver name: Hombing, weight 5650 kg, transporter code: 3500040 PT. Satrindo Jaya Agropalma, Clerk name:
Linda
- Hourly weighbridge monitoring form contains information of incoming FFB and delivered CPO / PK every hour.
- Recapitulation of received FFB from each suppler estate, which contains information: date, hour, estate, weighbridge slip, number of FFB delivery, police number, driver name, Complex, FFB weight (brutto, tarra, netto).
- Documentation of weighbridge software which is integrated with accounting system using SAP software.
Status: Comply E.4.2
The site shall inform the CB immediately if there is a projected overproduction of certified tonnage.
The estimated tonnage of CPO and PK products that could potentially be produced by mill had been recorded by the CB in the public summary of the initial audit 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:
- Estimated production of CPO was 34,724 tonnes - Estimated production of PK was 8,358 tonnes
The actual tonnage produced will be recorded in annual surveillance report of period ASA-01. It is recorded that since 18 May 2015 until ASA-01 audit, actual production of CPO was:
- Received FFB: 227,055 tonnes - CPO production: 34,047.76 tonnes - PK production: 8,449.01 tonnes
The data shows that there is no exceeding of CPO and PK production. Nevertheless, Mass Balance SOP stated that site will inform the CB immediately if there is a projected overproduction of certified tonnage.
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.)
Mill facility has conducted monitoring of incoming FFB and outgoing CPO / PK. CH has also record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO and PK on a three-monthly basis
Example of balancing stock for year 2015 in PT. DSL is as follows:
Period Processed FFB CPO production CCPO Dispatch Stock
certified Non Certified Non Certifi Non Certified Non
Certified Certified ed Certified certified Jan – Mar 2015 30.684,26 18.159,54 7.033.6 4.164,09 - 8.764,3 1.932,14 1.267,86 Apr – June 2015 43.766,26 23.502,6 9.778,03 5.253,45 - 15.658,0 1.494,8 978,5 Jul – Sept 2015 53.365,46 27.591,09 12.142,1 6.277,1 - 19.916,5 624,8 351,2 Okt – Des 2015 43.555,26 22.671,54 10.018,9 5.220,47 - 12.577,4 5.806,4 1,273,3 Jan – Mar 2016 28.429,21 15.268,92 6.581,36 15.268,9 - 13.106,8 638,23 35,54
CH has determined retention period of all SCCS document in accordance to SOP on Document Control (Number SOP/SMART/LH-02 dated January 2, 2014). All operating document will be kept for 10 years maximum of retention time. The expired documents (if any) will be considered to be destroyed.
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.
CH does not have kernel crushing plant unit. All Palm Kernel sent to Kernel Crushing Plant located outside of PT. DSL.
Status: Comply