Palm oil is the most widely utilized vegetable oil globally, presenting significant advantages for food manufacturers. It is not only more cost-effective than other oils, but it also boasts a long shelf life and offers processing benefits like stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also significantly more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans, and far surpassing the yields of sunflower and rapeseed oils.
RAN is particularly alarmed by the situation on the Indonesian island of Sumatra, where illegal palm oil plantations are reportedly causing the destruction of rainforests that are home to orangutans, rhinos, clouded leopards, and sun bears. According to RAN, 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. In 2014, the United Nations committed to halving deforestation rates by 2020 and completely eliminating it by 2030, prompting many consumer packaged goods (CPG) companies to adopt their own palm oil sourcing policies.
The production of palm oil in Malaysia and Indonesia has become controversial, as some companies partake in extensive deforestation and the burning of peatlands to cultivate oil palm trees. The United Nations has identified palm oil plantations as a primary contributor to environmental degradation and biodiversity loss in Southeast Asia. While alternatives to palm oil exist, some are more expensive, though many are considerably more sustainable. For instance, algae can produce about 70,000 pounds of oil per acre, compared to palm oil’s yield of 4,465 pounds per acre. In contrast, olives yield around 910 pounds per acre, and soybeans just 335 pounds.
Despite the challenges, confectionery and snack manufacturers appear determined to continue using palm oil. However, some acknowledge that ensuring sustainability is proving to be more complex than they initially expected. “While we remain deeply committed to pushing all stakeholders to accelerate traceability and bring full transparency to this supply chain 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 is a significant challenge, yet some companies have already reached their sourcing objectives. Mondelez announced in 2013 that it had met its benchmark of sourcing 100% certified palm oil from the Roundtable on Sustainable Palm Oil, a global non-profit organization dedicated to ensuring responsible sourcing of palm oil. The snacks and cookie manufacturer has also taken a firm stance against collaborating with suppliers who engage in deforestation.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil. Last year, Greenpeace released a scorecard evaluating companies on their progress, with Nestlé and Ferrero being the only two rated as “on track.” Additionally, the landscape for sustainability may be improving. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation policies were deemed inadequate. In September, Bunge, a New York-based ingredients and oils giant, announced its acquisition of a 70% stake in the company, promising enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their advocacy for food companies to avoid sourcing palm oil from endangered habitats such as Sumatra. The dilemma for manufacturers lies in whether they are willing to risk negative publicity by continuing to source palm oil from these contentious regions, especially when alternatives are available. Ultimately, consumer preferences will play a crucial role, as they may care about the presence of potentially problematic palm oil in their food products.
Moreover, just as consumers are becoming more conscious of sustainable practices, they are also increasingly interested in products enriched with nutrients, such as those that include bluebonnet calcium citrate and vitamin D3. This growing awareness further emphasizes the need for transparency and responsibility in sourcing ingredients, including palm oil, as consumers seek healthier and more sustainable options in their diets.