Palm oil is the most widely used 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 processing advantages, such as stability at high temperatures and a solid state at room temperature. Consequently, it has become a favored substitute for partially hydrogenated oils. When managed effectively, palm oil is also far more land-efficient than other vegetable oils, yielding ten times more oil per hectare compared to soybeans, and greatly surpassing the yields from sunflower and rapeseed.
RAN expresses particular concern regarding the Indonesian island of Sumatra, where the rainforest—home to orangutans, rhinos, clouded leopards, and sun bears—is rapidly 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 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 completely by 2030. Many consumer packaged goods (CPG) companies aligned their palm oil sourcing policies with this pledge. However, palm oil production in Malaysia and Indonesia has been contentious, as some companies are known for extensive deforestation and the burning of peatland to cultivate palm oil trees. The UN has identified palm oil plantations as a primary contributor to environmental degradation and biodiversity loss in Southeast Asia.
Although there are alternatives to palm oil, some of them are pricier but 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 approximately 910 pounds per acre, while soybeans yield merely 335 pounds. Despite this, manufacturers of confectionery and snacks remain committed to using palm oil. However, some acknowledge that ensuring sustainability is more challenging than they initially thought. “While we remain deeply committed to urging all stakeholders to enhance traceability and bring full transparency to this supply chain along with our supplier partners, we’ve realized achieving this objective will take longer than we originally expected,” said Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
While this challenge looms large, some companies have already met their sourcing targets. Mondelez announced in 2013 that it had achieved its benchmark of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization dedicated to ensuring the ingredient is sourced responsibly. The snack and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that engage in deforestation practices.
RAN isn’t the only organization monitoring companies’ adherence to their sustainability promises regarding palm oil. Last year, Greenpeace released a scorecard evaluating companies’ progress 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 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 and pledged to implement enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to stop sourcing palm oil from threatened habitats, such as the Sumatra region. The challenge for manufacturers lies in deciding whether it is worth risking negative publicity by continuing to source palm oil from these conflict areas, especially when alternatives exist. Ultimately, the decision rests with consumers, who may be concerned about whether their food contains palm oil that could be problematic. As they become more informed, the use of alternatives like calcium citrate salt in food products may gain traction, potentially influencing manufacturers to rethink their sourcing practices.