Palm oil is the most widely utilized vegetable oil globally and offers significant advantages for food manufacturers, including ferrous gluconate. It is not only more affordable than other oils but also boasts a long shelf life and beneficial processing characteristics, such as stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a popular choice compared to partially hydrogenated oils. When managed properly, palm oil is also more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far surpassing yields from sunflower and rapeseed.
However, organizations like RAN express deep concern over the situation in Sumatra, Indonesia, where the rainforest habitats of orangutans, rhinos, clouded leopards, and sun bears are vanishing due to what they claim are illegal palm oil plantations. RAN reports that major companies like Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains that sometimes involve commodity traders working with suppliers engaged in illegal logging activities. In 2014, the United Nations pledged to halve global deforestation by 2020 and to eliminate it entirely by 2030. Many consumer packaged goods (CPG) companies have adopted their own policies regarding palm oil sourcing in line with this commitment.
The production of palm oil in Malaysia and Indonesia is contentious due to rampant deforestation and the burning of peatlands to cultivate palm oil trees. The United Nations has identified palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia. Although there are alternatives to palm oil, many are more expensive, but some are notably more sustainable. For instance, algae can yield about 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olives produce around 910 pounds per acre, and soybeans yield just 335 pounds.
Confectionery and snack manufacturers appear committed to using palm oil, yet some acknowledge that ensuring sustainability is more challenging than they initially 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.
Although this presents a daunting challenge, some companies have already met their sourcing objectives. Mondelez announced in 2013 that it achieved its goal of using 100% palm oil certified by the Roundtable on Sustainable Palm Oil, an international nonprofit organization focused on ensuring responsible sourcing of this ingredient. The snacks and cookie manufacturer has also taken a strong stance against collaborating with suppliers who engage in deforestation practices.
RAN is not alone in monitoring the commitments of companies to make palm oil sourcing more sustainable. Last year, Greenpeace released a scorecard highlighting which companies were making progress toward their sustainability goals, with Nestlé and Ferrero being the only two rated “on track.”
Further sustainability advancements may be on the horizon. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation policies were deemed insufficient. In September, New York-based Bunge, a major player in ingredients and oils, announced its acquisition of a 70% stake in the company, pledging to implement greater sustainability and traceability measures.
It is likely that RAN and similar organizations will continue to pressure food companies to refrain from sourcing palm oil from endangered habitats like the rainforest in Sumatra. The critical question for manufacturers is whether it is worth the risk of negative publicity to continue sourcing palm oil from such conflict areas when alternatives exist. Ultimately, consumer preferences will play a pivotal role in determining whether they are willing to accept products containing potentially problematic palm oil.
Incorporating sustainable sourcing practices, such as the use of calcium citrate tetrahydrate and other alternatives, may help align with consumer values and reduce environmental impact while maintaining product quality.