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.
Jangkang POM 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 Plasma and Third Party.
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 Jangkang POM obtained from the data of 12 months before the audit activities and have been described in this ASA-1.2 report, either of Actual product for period of 6 January 2017 – 28 October 2017.
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_PO1000000531
Certified CPO sold to each buyer period of 5 January to 28 October 2017
Date Buyer Volume
25 October 2017 PT. Synergy Oil Nusantara 1,600
6 September 2017 PT. Synergy Oil Nusantara 1,600
1 August 2017 PT. Synergy Oil Nusantara 1,600
1 August 2017 PT. Synergy Oil Nusantara 1,600
6 June 2017 PT. Synergy Oil Nusantara 1,600
3 May 2017 PT. Synergy Oil Nusantara 1,600
22 March 2017 PT. Synergy Oil Nusantara 1,600
24 February 2017 PT. Synergy Oil Nusantara 2,000
16 January 2017 PT. Synergy Oil Nusantara 2,500
Total 15,700
Certified Palm Kernel sold to each buyer period of 5 January to 28 October 2017
Date Buyer Volume
9 April 2017 Steelindo Wahana Perkasa (KCP) 750.20
9 April 2017 Steelindo Wahana Perkasa (KCP) 750.01
9 April 2017 Steelindo Wahana Perkasa (KCP) 750.61
SPO – 4006a.7 (August 2016) Page 41
Prepared by Mutuagung Lestari for Jangkang POM – PT Sahabat Mewah & Makmur, PT Austindo Nusantara Jaya Agri
9 April 2017 Steelindo Wahana Perkasa (KCP) 750.83
Total 3,001.65
The transactions shown are in accordance with the remaining volume recorded in the Palm trace - CPO projection: 43,312 ton and remaining: 27,612 ton (sold: 15,700 ton)
- PK projection: 9,844 ton and remaining: 6,842.35 ton (sold: 3,001.65 ton) 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.
Jangkang POM has had SOP related to all element in Mass Balance Requirement consist of Mass Balance SOP, product traceability SOP and sale system for certified sustainable palm oil SOP. The procedur are described the duties and responsibilities of each part; supply chain format; mechanish for over production. The results of interviews with weighbrige operator showed that workers have already known the duties and responsibilities of each in the implementation of SCCS.
Status: Comply E.3.2
The site shall have documented procedures for receiving and processing certified and non-certified FFBs.
Jangkang POM has had SOP of Mass Balance, among others, described about the process of FFB reception from the supplier.
The results of field visits and document review showed that the FFB received by the mill comes from the estate that has been certified with RSPO and the estate that has not been certified with RSPO. To find the source of FFB comes from the estate that has been certified with RSPO and then it’s labeled on the Delivery Note.
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 6 January 2016 to 28 October 2017
Month FFB (tonnes)
RSPO Certified Non Certified Total
6 - 31 January 17 21,720.150 1,982.870 23,703.020
February 17 16,460.430 2,845.170 19,305.600
March 17 13,949.580 3,196.430 17,146.010
April 17 14,575.840 3,273.110 17,848.950
May 17 17,074.930 4,786.190 21,861.120
June 17 17,656.870 4,624.970 22,281.840
July 17 27,469.060 6,801.470 34,270.530
August 17 18,375.010 4,787.040 23,162.050
September 17 23,152.250 4,713.470 27,865.720
1 - 28 October 17 19,220.510 4,365.830 23,586.340
Total 189,654.630 41,376.550 231,031.180
Status: Comply
SPO – 4006a.7 (August 2016) Page 42
Prepared by Mutuagung Lestari for Jangkang POM – PT Sahabat Mewah & Makmur, PT Austindo Nusantara Jaya Agri E.4.2
The site shall inform the CB immediately if there is a projected overproduction of certified tonnage.
Certified estimated product for period of 6 january 2016 – 5 January 2017:
- CSPO: 61,472 ton - CSPK: 13,220 ton
Certified actual product for period of 6 january 2016 – 5 January 2017:
- CSPO: 40,855.126 ton - CSPK: 6,582.085 ton
Certified estimated product for period of 6 January 2017 – 5 January 2018:
- CSPO: 43,312 ton - CSPK: 9,844 ton
Certified actual product for period of 6 January 2017 – 28 October 2017:
- CPO: 43,076.125 ton - PK: 10,320.950 ton
Based on the above, the company has not been able to show report to CB for over CSPK production. NC. 2017.4 E.4.2 Status: Non Compliance with Major Category
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.)
Sales of certified products (CPO and PK) are only made from positive stock. PT SMM has recorded and balanced RSPO certification and product shipments (CPO and PK) RSPO certification on a 3 month basis as described in the following table:
CPO
No Period Production CPO (Ton) despatch CPO (Ton)
Cert Non-Cert Total ISCC RSPO Non-Cert
1 Jan 17 4,778.38 376.74 5,155.13 - 2,500.00 -
2 Feb 17 3,625.87 540.58 4,166.45 - 2,000.00 4,000
3 Mar 17 3,163.55 607.32 3,770.87 - 3,200.00 4,800
Sub Total 11,567.81 1,524.64 13,092.46 - 7,700.00 8,800
4 Apr 17 3,175.87 621.89 3,797.77 - - 3,000
5 May 17 3,820.56 859.55 4,680.12 - 1,600.00 3,005.31
6 June 17 4,077.94 816.04 4,893.98 - 1,600.00 2,294.69
Sub Total 11,074.38 2,297.48 13,371.87 - 3,200.00 8,300
7 July 17 5,923.20 1,228.24 7,151.45 - - 3,900
8 August 17 4,346.43 909.53 5,255.96 - 1,600.00 3,900
9 Sept 17 5,601.76 895.55 6,497.32 - 1,600.00 4,400
Sub Total 15,871.40 3,033.33 18,904.74 - 3,200.00 12,200 TOTAL 38,513.60 6,855.47 45,369.07 - 15,700.00 29,300 PK
No Period Production PK (Ton) despatch PK (Ton)
SPO – 4006a.7 (August 2016) Page 43
Prepared by Mutuagung Lestari for Jangkang POM – PT Sahabat Mewah & Makmur, PT Austindo Nusantara Jaya Agri
Cert Non-Cert Total ISCC RSPO Non-
Certified
1 Jan 17 987.63 89.22 1,076.86 - - 922.72
2 Feb 17 801.57 128.03 929.60 - - 577.28
3 Mar 17 701.57 143.83 845.41 - - 487.72
Sub Total 2,490.77 361.10 2,851.88 - - 1,987.72
4 Apr 17 606.78 147.29 825.29 - 3,001.65 1,062.28
5 May 17 760.96 215.37 976.34 - - 600.00
6 June 17 718.46 208.12 926.58 - - 550.00
Sub Total 2,086.21 570.79 2,728.22 - 3,001.65 2,212.28
7 July 17 1,334.82 306.06 1,640.88 - - 300.00
8 August 17 963.72 215.41 1,179.13 - - 1,100.00
9 Sept 17 1,306.53 212.10 1,518.64 - - 950.00
Sub Total 3,605.07 733.58 4,338.66 - - 2,350.00
TOTAL 8,182.06 1,665.48 9,918.76 - 3.001.65 6,550.00 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.
Jangkang POM does not perform activities of palm kernel crushing to the independent palm kernel crushers.
Status: Comply
SPO – 4006a.7 (August 2016) Page 44
Prepared by Mutuagung Lestari for Jangkang POM – PT Sahabat Mewah & Makmur, PT Austindo Nusantara Jaya Agri