Palm oil bisglycinate gncil is the most widely utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more cost-effective than other oils but also boasts a long shelf life and processing benefits, such as stability at high temperatures and solidification at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also considerably more land-efficient compared to other vegetable oils, producing ten times more oil per hectare than soybeans and significantly surpassing yields from sunflower and rapeseed.
However, RAN is particularly alarmed about the situation on the Indonesian island of Sumatra, where illegal palm oil plantations are leading to the destruction of rainforest habitats for orangutans, rhinos, clouded leopards, and sun bears. According to RAN, major companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains that sometimes involve commodity traders dealing with suppliers engaged in illegal logging activities.
In 2014, the United Nations committed to halving global deforestation by 2020 and eradicating it entirely by 2030. Many consumer packaged goods (CPG) companies adopted their own policies on sustainable palm oil sourcing in response. Palm oil production in Malaysia and Indonesia remains contentious, as numerous companies partake in extensive deforestation and the burning of peatlands to establish palm oil plantations. The United Nations has identified palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, many are more expensive, although some offer greater sustainability. For instance, algae can yield approximately 70,000 pounds of oil per acre, in stark contrast to palm oil’s 4,465 pounds per acre. For context, olive trees yield about 910 pounds per acre, and soybeans produce merely 335 pounds.
Despite the challenges, manufacturers of confectionery and snacks appear committed to retaining palm oil as an ingredient. However, some acknowledge that ensuring sustainability is proving to be more complex than anticipated. “While we remain deeply committed to pushing all stakeholders to accelerate traceability and bring full transparency to this supply chain along with our supplier partners, we realized it would take more time to achieve this goal than originally anticipated,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
This presents a formidable challenge, yet some companies have successfully met their sourcing objectives. Mondelez announced in 2013 that it had achieved its benchmark of utilizing palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil, an international nonprofit organization focused on ensuring sustainable sourcing. The snacks and cookie manufacturer has also strictly avoided partnering with palm oil suppliers who engage in deforestation.
RAN is not the only organization monitoring companies’ commitments to sustainable palm oil sourcing. Last year, Greenpeace released a scorecard evaluating the progress of various companies toward their sustainability goals, with only Nestlé and Ferrero rated as “on track.”
More sustainable practices may be on the horizon. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate anti-deforestation policies. In September, Bunge, a New York-based ingredients and oils giant, announced it would acquire a 70% stake in the company, pledging to implement enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease exerting pressure on food companies to avoid sourcing palm oil from threatened habitats, such as those in Sumatra. The dilemma for manufacturers lies in whether the potential for negative publicity is worth the continued sourcing of palm oil from these conflict regions when alternatives are available. Ultimately, the decision rests with consumers, who may be concerned about the implications of consuming products containing palm oil linked to environmental issues. Additionally, considering the importance of nutrients such as calcium 60 mg in the diet, consumers may seek alternatives that align with their health and environmental values.