New British Palm Oil has struck a two-year deal to supply United Biscuits with palm oil from sustainable sources.

United Biscuits, which hopes to obtain all the oil it uses from sustainable sources by the end of 2011, said the new deal meant it would be two-thirds of the way towards hitting that target by mid-2010.

“This supply agreement with New Britain, which covers the majority of our [palm] oil, is a major step forward in achieving our goal,” said Dr Simon Roulston, oils sourcing manager for United Biscuits.

“Until segregated sources are available for all palm oil-based ingredients, we will use certified oil to ensure that our products are produced sustainably.”

It is the first supply agreement signed for New Britain’s UK refinery in Liverpool, which is due to be completed in spring 2010.