¡Choosing sustainable Tropical Oil!

Use of Tropical Oil:

At AgroAmerica, we produce and sell sustainable vegetable oil, used for food products and personal care products. Our oil comes from the fruit of the Oil Palm, considered as a
tropical tree.

Nutritional value of Tropical Oil

⦁ Contains vitamins A and E that help reduce cellular damage, which accelerates aging and the development of some diseases.

⦁ The fatty acids in “the tropical oil” are critical to build body cell membranes, including bone, nerves and brain.

⦁ Contains micronutrients that help cell function to keep the body healthy and working correctly.

⦁ It is cholesterol-free.

“Palm oil is the most widely consumed vegetable oil
on the planet, found in many packaged products sold
in the supermarket.” WWF

Properties of sustainable palm oil

Making Sustainable Tropical Oil a reality

At AgroAmerica we have implemented practices that contribute to the sustainable production and commercialization of tropical oil. We carry out our processes with high quality standards, which are internationally certified; with the purpose of promoting environmental, social and economic development.

Tropical oil production does not require vast tracts of land. Of the land dedicated to oil and fat crops around the world, only 6% are tropical oil crops and they produce 28% of the total global oil volume.

The nutritional Value of Sustainable Palm Oil

Tropical oil production in Guatemala is geared completely towards human consumption. Guatemala ranks first in the world in terms of productivity per hectare, outperforming Malaysia and Indonesia. The shortage of land for sustainable tropical oil cultivation means that we have had to be more efficient per hectare in order to minimize the social and environmental impact.

We have four Tropical oil mills for the production of the sustainable oils. Three mills are located in Guatemala and one in Panama. In Guatemala, two mills are in the municipality of Morales, Izabal, called La Francia and Del Atlántico, and one (Agroaceite) is in Retalhuleu. In Panama, Agropalma is located in the region of Chiriqui.

Palm kernel oil

Sustainable Palm Kernel Oil

Palm kernel oil is extracted from the nut, or kernel, that makes up the fruit bunch of the palm tree. The composition of this oil is different from the one obtained from the whole fruit of the palm tree. Palm kernel oil can be found in a number of products, including margarine, vegetable oil and shortening, creamers, chocolate and ice cream. Depending on the amount per serving, palm kernel oil may offer some health benefits. One benefit of palm kernel oil is that it is completely free of cholesterol.

The oil has a yellow color and can be easily refined.  It then acquires a clear color and this is the form used to make hundreds of edible products. Olein and palm stearin are two variants of liquid oil obtained from the fractionation processes of the palm kernel oil, each one with different physical and chemical characteristics and specific functions for the application in food products.

Crude Palm oil

Crude Sustainable Tropical Oil

Crude Sustainable Tropical Oil is obtained from the mesocarp of the palm fruit. It is characterized by a 1:1 ratio of palmitic and oleic acid, which gives it a high stability to oxidation and does not require hydrogenation (precursor process of trans fatty acids). It has a high content of vitamin A (carotene) and vitamin E (tocopherols and tocotrienols).

The Crude Sustainable Tropical Oil is used in its natural form as a raw material in the edible oil and fats industry, (liquid oils and margarines) animal feed, soaps, cosmetics and others. Thanks to its fatty acid relation, two by-products are obtained from the oil: stearin and olein, with a wide range of uses at the industrial level.

Palm kernel cake, or palmiste, is obtained from the extraction of the oil from the palm fruit kernel

Sustainable Palm kernel cake

Palm kernel cake, or palmiste, is obtained from the extraction of the oil from the palm fruit kernel. It has been shown that the cake is an important energy and protein source in the manufacture of animal feed. It’s used in livestock feed formulation; it provides soluble and insoluble fiber, proteins and fat, which are basic elements for the development of livestock, beef and dairy cattle.

Sustainable Palm Oil products produced in AgroAmerica mills.

AGROAMERICA TROPICAL OIL HOLDING CORP.

Who are we?

We are the business unit of AgroAmerica that engages in the production and marketing of products that come from oil palm. We are a company oriented to our people and we do not employ temporary staff.

Preserved Identity Model 

Agroamerica Tropical Oil Holding Corp. has opted for the Identity Preserved supply chain model (IP), which guarantees customers that all the processed fruit in the tropical oil plants is 100% certified, thus ensuring traceability in the supply chain.

Agroamerica Tropical Oil Holding Corp. owns four oil processing plants, where 100% of CPO and CPKO is produced. (See map in the Sustainability Report 2018). We have 4 Crushers in which our Palm Kernel (PK) is processed, allowing us to guarantee the complete traceability of our products. The three Crushers located in Guatemala run under the RSPO IP model.

Currently, 50% of the plants located in Northeastern Guatemala are RSPO certified with an Identity Preserved model and the commitment is for all of our own supply base to be RSPO certified by 2020, including plants located in Southwestern Guatemala and on the Southern Coast of Panama. With regard to oil palm crops, 62.5% of the plantations are RSPO certified.

In addition, 75% of the oil processing plants are Rainforest Alliance (Identity Preserved) certified, with the highest certification (Category A) for operations located in Northeastern Guatemala and by 2020, with the inclusion of the Panama Unit, we expect to have 100% certification.

Subsidiaries of Agroamerica Tropical Oil Holding Corp.

Agrocaribe

www.agrocaribe.com

  • It is located in Northeastern Guatemala and has a group membership in RSPO: https://www.rspo.org/members/265/Agrocaribe
  • The member companies of the Agrocaribe group are: Agrofrancia, Extractora del Atlántico, Extractora La Francia, Servicios Integrales Montañas del Norte S. A and Agro Palm Ingredients S.A. de CV.
  • These operations have two processing plants and an oil refinery.
  • 100% of the production of crude palm oil and palm kernel oil are certified under the RSPO IP model.
  • Agrocaribe is a trader to commercialize its products; produced under the RSPO IP model in our POMs located in the northeast of Guatemala; allowing us to guarantee the complete traceability of our products.
  • We have in place a smallholder program that is managed under the “Independent Producers” model.
  • Our Maps: Independent Producers and Agroaceite and Agrofrancia

Agroaceite

www.agroaceite.com

  • It is located in Southwestern Guatemala and is a member of RSPO: https://www.rspo.org/members/998/Agroaceite-S.A
  • The operation has one tropical oil processing plant.
  • Agroaceite is the fourth company in the world, the third in Latin America and the first in Central America to obtain the RSPO Next certification, which includes a number of advanced criteria that exceed the RSPO standard.
  • Operations Map

Agropalma

  • It is located in Southern Panama.
  • The processing plant started operations in August 2017.
  • As of 2019, the total planted area is 2,170 hectares; not planted area: 181.57 hectares; and the planted area of Independent Smallholders is 3891.85 hectares. Agropalma has not added new plantations since January 2015.
  • As of 2019, we have 97.89 hectares of riparian areas (voluntary conservation area)
  • It is not yet an RSPO member since it will join the RSPO membership in process for Agroamerica Tropical Oil Holding Corp.
  • In 2018 we estimated the carbon footprint released by the operations through an independent and specialized entity: Green Development.
  • It is expected to be RSPO certified by 2020.
  • Operations map

Occupational Health and Safety

At AgroAmerica we have Occupational Health and Safety policies to be able to offer a safe workplace through preventive practices.

We are committed to ensuring a risk-free workplace, through internal controls to avoid hazards, injuries, risks, or illnesses. We provide constant training to our workers; so they know how to properly use their work equipment and carry out their work safely and efficiently.

With our Occupational Health and Safety practices in place, we strive to minimize the risks of accidents, injuries, deaths, and illnesses, achieving zero deaths registered as a result of occupational accidents.

Medical care in the workplace

At AgroAmerica we make sure that we provide our workers the best health conditions in their workplace, as well as ac­cess to medical services. We have professional nurses that examine workers who need it, every day, be it for preventive health, first aid and/or common illness reasons.

A Sustainable Commitment

More than a Corporation dedicated to the production of high-quality food and agro-industrial products, we are characterized by our commitment to sustainability, the socio-economic development of countries, regions, and people who live in our areas of influence.

The best way to be competitive in the market is through sustainable production. To achieve this, we have developed a sustainability strategy focused on five pillars to contribute to the common good, implementing actions that allow us to be sustainable over time based on initiatives promoted by the United Nations.

Sustainability Policies

We have sustainability policies in place that promote responsible labor, environmental and social practices. Likewise, we have a code of ethics based on values and transparency, applicable to our workers, directors, customers and suppliers, to guarantee quality products, and ensure competitive and profitable business, while at the same time supplying products that are ethically produced and delivered, consistent with market demands.

> Social Action Plan

Sustainability organization chart

To address the identified sustainability needs, we have developed an organizational structure responsible for establishing and implementing the sustainability strategy through Corporate Social Responsibility actions.

2018 Tropical Oil Sustanability Report

As part of our commitment to continuous improvement, especially in terms of sustainability; Each year we prepare and publish our Tropical Oil Sustainability Report, in which we present the sustainable initiatives and practices carried out throughout the year.

We focus our CSR efforts on five pillars with which we seek to contribute to the common good, promoting development and sustainability among our employees, our communities and our planet; and thus continue to comply with high quality, responsible and ethical business management.

Adaptation to Climate Change

We are committed to implementing actions and measures for adaptation to climate change. We performed a Climate Risks assessment to identify possible impacts on our operations.

Gender Equality

At AgroAmerica, we ensure the participation and empowerment of women, through the generation of employment, so they can grow professionally and bring development to their families and communities.

Our policies focus on the fulfillment of Human Rights; Specifically, our Equality and Non-Discrimination Policy contributes to the implementation and management of an inclusive business culture.

Women who work at the company enjoy full and effective participation and equal opportunities. During 2018, 17% of our senior management team were women.

Gender committee

We have a Gender Committee integrated by female workers representatives who work at the company.

The purpose is to listen to their complaints and improve labor conditions and gender equality. Gender Committee members have received awareness training on company policies, human rights, and women’s rights.

Responsible Use of Water

We have technologies for efficient water management (see our Sustainability Report). We are committed to reducing the use of water by 40-45% by 2020, through the various technologies used. We also have the commitment to create “buffer” zones on river banks.

All our oil mills have waste water treatment systems which include the collection methane gas from the ponds for renewable energy generation. This has allowed us to reduce BOD and COD in effluent outlets.

Commitment to improving water quality (BOD and COD): By 2019, we have technical studies of wastewater from each of our operations based on national legislation; Annual monitoring is performed to verify compliance.

Additionally, at the end of the effluent treatment process, water meets legal requirements of the country for use in agricultural irrigation through spraying. This returns part of the minerals to the crop.

Our commitment based on intensity is to maintain the use of water by  0.60m3 – 1.25 m3 per tonne of product by 2019; We currently maintain the use of water by 0.99 m3 per tonne of product.

Smallholders Program

We have developed a Smallholders Program in order to share the knowledge acquired in our years of experience.

Our goal is to raise awareness about market requirements and guide Smallholders to comply with the requirements of international standards. The program serves as a guide for independent producers to develop and implement Good Agricultural Practices and management in their operations.

Carbon Print

We are committed to progressively reducing the carbon footprint in our operations until we have a negative carbon footprint measurement. This means that the equivalent number of tons of carbon dioxide (tCO2e) that are fixed by our operations is greater than the total emissions generated by agricultural and industrial activities, contributing to maintain an environmental balance and mitigate global warming.

Our commitment to sustainable production and environmental conservation drives us to constantly monitor our GHG emissions through a carbon footprint study to estimate the emissions and the amount of carbon sequestration generated by the production of oil in our mils and the production of fruit in the field in all our operations. Review our Carbon Emissions Progress.

Use of Chemicals

At AgroAmerica we do not use agrochemicals such as Paraquat, or Class 1A and 1B pesticides. We do not use chemicals listed in the Stockholm Convention and the Rotterdam Convention either.

During 2018 we responsibly use agrochemicals to guarantee optimum production and crop health in our plantations.

We also have an Integrated Pest Management Plan to ensure plant health.

Certification Status

Agroamerica has committed to building a 100% transparent, traceable and sustainable palm supply chain by 2020.

As added to No Deforestation pledge, in Traceability our commitment is: All tropical oil volumes we produce, trade (ship and physically handle) and process will be traceable to sustainable mills and plantations by 2020.

In our sustainable work, we actively pursue certification of all our oil palm plantations under global sustainability standards, such as the Roundtable on Sustainable Palm Oil (RSPO) and Rainforest Alliance Sustainable Agriculture Standard (RAS).

Agrocaribe has 100% of its POMs certified under RSPO standard in preserved identity model (IP) an also in Rainforest Alliance Sustainable Agriculture Standard.

Agroaceite is 100% RAS certified. It has 100% of its POMs certified under RSPO standard in the Preserved Identity model (IP) and is the fourth company in the world RSPO Next certified.

Agropalma is Kosher Certified and is in the process of RSPO certification in 2020, according to this plan.