Hi Flavour Crusader, thanks for a great question!
To clarify right off the bat, Kellogg’s doesn’t pay or employ farmers directly. Instead, we have contracts with suppliers that manage these relationships and purchase the grains direct from the farmers at a price based on the current market. This price differs based on the amount of grain that we require, the type of grain we’re sourcing and the overall Australian economy. The specific amounts fluctuate, but you can find out what the current grain prices are on the ASX website.
Taking care of the planet is very important to us Aurora. Last year Kellogg’s released its global sustainability goals for 2020 and work has already been done on introducing measures that will see us further reduce energy and water use across our business, achieve 100% certified sustainable packaging, send zero waste to landfill and responsibly source our ten priority ingredients - which are corn, wheat, rice, potatoes, cocoa, sugar beets, sugar cane, palm oil, fruits and vanilla.
Here on home soil, we have been working to reduce the footprint of the business. We are already diverting 95% of waste from landfill, as well as implementing water and energy-saving projects in our factory.
Hi Rhonda, although we are a very small user of palm oil, we’ve been committed to responsibly sourcing palm oil since 2009. All of the palm oil that is used in our products is sourced from a combination of the Roundtable of Sustainable Palm Oil (RSPO) Certified Segregated supply chain, RSPO Mass Balance mixed-source supply and the purchase of Green Palm certificates.
We’re always working with our global suppliers to source fully traceable palm oil from certified sources that are economically, socially and environmentally responsible. Our suppliers have to adhere to a strict set of criteria that ensures forest and peat lands, and human rights are all protected.
As part of our overall climate commitments, Kellogg is committed to achieving zero net deforestation by 2020 in high-risk supply chains including soy, palm oil, timber, fiber and soy.