Palm oil is the most commonly used vegetable oil globally and presents significant advantages for food producers. It is not only less expensive than other oils but also boasts a long shelf life and processing benefits, such as stability at high temperatures and solid form at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed effectively, palm oil is considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and surpassing the yields of sunflower and rapeseed.
RAN is particularly concerned about the Indonesian island of Sumatra, where the rainforest, home to orangutans, rhinos, clouded leopards, and sun bears, is vanishing due to what the organization claims are illegal palm oil plantations. RAN reports that companies like Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, often involving commodity traders who engage with suppliers that illegally log in these areas. In 2014, the United Nations committed to halving deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies have since established their own policies regarding palm oil sourcing.
The production of palm oil in Malaysia and Indonesia is contentious, as some companies partake in extensive deforestation and the burning of peatland to establish palm oil plantations. The United Nations has identified palm oil production as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia. While there are alternatives to palm oil, many are more costly; however, some options are considerably more sustainable. For instance, algae can produce around 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olives yield approximately 910 pounds per acre, and soybeans only provide about 335 pounds.
Manufacturers of confectionery and snacks appear determined to continue using palm oil. However, they acknowledge that ensuring sustainable sourcing is more challenging than 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.
This presents a formidable challenge, but some companies have already met their sourcing objectives. Mondelez announced in 2013 that it achieved its goal of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international non-profit organization dedicated to ensuring that palm oil comes from responsible sources. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers who engage in deforestation practices.
RAN is not the only organization monitoring companies’ commitments to making palm oil sourcing more sustainable. Last year, Greenpeace released a scorecard evaluating companies’ progress towards their sustainability goals, with Nestlé and Ferrero receiving an “on track” rating. More sustainability initiatives may be on the horizon, as several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer considered insufficiently committed to anti-deforestation policies. 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 enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their pressure on food companies to stop sourcing palm oil from endangered habitats like those in Sumatra. The pressing question for manufacturers is whether it is worth risking negative publicity to continue sourcing palm oil from these regions when alternatives exist. Ultimately, consumers hold the power; they may be concerned about whether their food contains potentially problematic palm oil. As the industry evolves, the inclusion of sustainable practices will be crucial, akin to the demand for ingredients like calcium citrate 700 mg, which reflects a growing awareness of health and environmental impacts.