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.
Bumi Permai Mill 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 PT Kutai Agro Jaya and new development areas in the Cooperative "Sawit Etam Bersama", Cooperative "Forward Build" and Cooperation "Tanah Sama" (outside the scope).
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 BPM obtained from the budget data of 12 months (Mei 2017-April 2017) after the audit activities and have been described in this ASA-3 report, consist of:
FFB:297,248.49 ton
CPO: 77,347.06 ton (OER: 26%) PK: 13,952.80 ton (KER: 4.70%)
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_PO1000001488
Certified CPO sold to each buyer period of 26 June 2016 to 30 April 2017
Date Buyer Volume
27/06/16 LION SUPER INDO, PT DELHAIZE GROUP 720
29/06/16 BURGER KING EUROPE GMBH 780
29/06/16 FRITO LAY (A DIVISION OF PEPSICO) 4,220
22/07/16 FRITO LAY (A DIVISION OF PEPSICO) 1,000
29/07/16 C.H. GUENTHER & SON, INC. 293
09/08/16 FRITO LAY (A DIVISION OF PEPSICO) 707
10/08/16 SHEARER'S FOODS LLC 51
11/08/16 FRITO LAY (A DIVISION OF PEPSICO) 1,862
11/08/16 ADVANCED LIQUID FEEDS LTD 150
11/08/16 ADVANCED LIQUID FEEDS LTD 44
11/08/16 ADVANCED LIQUID FEEDS LTD 300
12/08/16 ANTONS BEST OY 100
13/08/16 DKS CO LTD 25
16/08/16 DAUDRUY VAN CAUWENBERGHE ET FILS 200
SPO – 4006a.7 Page 45 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)
SOP of Supply chain did not change from previous assessments contained in the SOP of RSPO Sustainability for Estate (PMM/MAN-03A, Rev 00 dated October 31, 2013) describing the responsibilities of each section, FFB delivery verification, record keeping, Contractor, independent audit, validity period of certificate. Based on interviews with weighbridge workers at BPM and workers in Rahayu Bulking, the workers explained that they had received training related to the supply chain (mass balance).
Status: Comply E.3.2
The site shall have documented procedures for receiving and processing certified and non-certified FFBs.
BPM already has SOP of RSPO Sustainability for Estate which includes explaining about the process of receiving FFB from supplier's (Estate). Based on interviews with workers at weighbridge stations, it is known that the worker can explain the origin of the certified and non-certified FFB, for example for FFB certified is derived from his own Estate and Coorporative Estate while for non-certificate are FFB from PT.KAJ and from several fields in LLE gardens (in the office there is a non-certificate FFB list). To find the source of FFB comes from the estate that has been certified with RSPO, and then it’s labeled on the Delivery Order Letter in the form of stamp RSPO CERTIFIED.
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 26 June 2016 to 30 April 2017
Period FFB Recieve (Ton)
Certified Non-Certified Total
26 – 30 June 2016 2,071.73 328.56 2,400.29
July 2016 10,431.50 1,367.44 11,798.94
August 2016 15,195.53 1,488.92 16,684.45
September 2016 22,580.99 2,354.54 24,935.53
October 2016 28,248.34 2,929.27 31,177.61
November 2016 25,416.78 3,523.52 28,940.30
December 2016 19,447.62 2,199.50 21,647.12
January 2017 15,828.47 2,139.33 17,967.80
February 2017 17,043.78 1,821.91 18,865.69
March 2017 23,027.98 1,303.46 24,331.44
April 2017 19,308.90 1,679.00 20,987.90
Total 198,601.62 21,135.45 219,737.07
For the record of FFB from Sawit Ttam Bersama Coorporative (LLE), Maju Membangun Coorporative (LLE) and Tanah Sama Coorporative(BPE) that outside the certificate scope have been separated in Mass Balance Sustainability (CPO) documents, for example in LLE:
Period FFB Recieve (Ton) from LLE
Certified Non-Certified
26 – 30 June 2016 12.86 444.08
July 2016 105.71 2,064.50
August 2016 100.53 2,640.63
September 2016 172.92 3,983.65
October 2016 243.20 4,783.31
November 2016 274.43 4,259.47
December 2016 159.56 3,433.22
January 2017 215.04 2,972.94
SPO – 4006a.7 Page 46 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)
February 2017 195.95 3,342.29
March 2017 243.49 4,477.10
April 2017 187.65 3,641.95
Total 1,911.34 36,043.14
Status: Comply E.4.2
The site shall inform the CB immediately if there is a projected overproduction of certified tonnage.
Since receiving the RSPO certificate (June 26, 2015) up to the audit (April 30, 2016), BPM production of FFB, CSPO and CSPK does not exceed the RSPO certificate issued.
Received FFB: 198,601.62 Ton Total estimate in certificate is 281,654 Ton
CPO: 47,861.17 Ton Total estimate in certificate is 73,230 Ton
PK: 8,523.30 Ton Total estimate in certificate is 12,674 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.)
BPM has had a monthly report which described about the Acceptance of FFB, Production of CPO and PK, Delivery of CPO and PK. During the period of June 2016 to April 2017 there is no shipment of RSPO certified products (CSPO and CSPK).
There is the following product shipment data from BPM:
Period CPO Shipment (ton) PK Shipment (ton)
RSPO Certified
ISCC Certified
Non Cert RSPO Certified
ISCC Certified
Non Cert 26 – 30 June
2016 - - 3,000.31 - - 24.25
July 2016 - - 6,000.19 - - 565.89
August 2016 - - 3,000.16 - - 750.56
September
2016 - - 6,001.86 450.00 - 332.69
October 2016 - 9,000 - 600.00 - 1,245.21
November 2016 - - 3,000.21 - - 1,356.08
December 2016 3,000.13 - - 800.00 - 319.24
January 2017 - 3,000 3,000.19 900.00 -
February 2017 - - 3,000.20 900.00 - -
March 2017 - 3,000 3,000.22 800.00 - - April 2017 - 6,000 - 800.00 - - Total 3,000.13 21,000 30,003.32 5,250.00 - 4,593.92
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.
BPM does not use outsourced activity to independent palm kernel crusher. The BPM sold the entire kernel.
SPO – 4006a.7 Page 47 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)
Status: Comply
SPO – 4006a.7 Page 48 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)