Palm oil stands as the most widely utilized vegetable oil globally, providing significant benefits for food manufacturers. It is not only more affordable than other oils, but it also boasts a long shelf life and advantageous processing characteristics, including stability at high temperatures and solid form at room temperature. Consequently, it has emerged as a favored alternative to partially hydrogenated oils. When managed effectively, palm oil is also considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far surpassing the yields of sunflower and rapeseed.
However, concerns have been raised, particularly regarding the Indonesian island of Sumatra, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is disappearing due to what RAN describes as illegal palm oil plantations. 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 dealing with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies followed suit with their own palm oil sourcing policies. The production of palm oil in Malaysia and Indonesia is contentious, with certain companies participating in extensive deforestation and burning peatland areas to cultivate palm oil trees. The UN has identified palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While alternatives to palm oil exist, some are more expensive but offer greater sustainability. For instance, algae can produce approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. To put this into perspective, olives yield about 910 pounds per acre, while soybeans only produce around 335.
Although confectionery and snack manufacturers are dedicated to maintaining the use of palm oil, many acknowledge that ensuring sustainability is proving more challenging than expected. “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, to The Guardian.
This presents a formidable challenge, yet some companies have successfully reached their sourcing objectives. Mondelez reported that it achieved its benchmark of utilizing 100% certified palm oil from the Roundtable on Sustainable Palm Oil — a non-profit organization dedicated to ensuring ethical sourcing — in 2013. The snacks and cookie manufacturer has also taken a firm stance against partnering with palm oil suppliers who engage in deforestation.
RAN is not alone in monitoring companies’ commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard evaluating the progress of various companies, with Nestlé and Ferrero being the only two rated as “on track.”
Sustainability efforts may be advancing further. 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 major player in the ingredients and oils sector based in New York, announced its acquisition of a 70% stake in the company, promising enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to eliminate palm oil sourced from endangered habitats like those in Sumatra. The dilemma for manufacturers is whether the potential for negative publicity is worth the continued sourcing of palm oil from these contentious areas, especially when alternatives are available. Ultimately, consumer preferences will play a crucial role, as many may be concerned about whether their food contains palm oil with questionable sourcing practices.
Incorporating products like Citracal chewable calcium can provide consumers with additional health benefits, but the sustainability of ingredients like palm oil remains a pressing issue. The food industry must navigate these challenges while ensuring that their sourcing practices align with consumer values and environmental responsibilities.