Palm oil is the most widely utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more affordable than other oils, but it also boasts a long shelf life and processing benefits like stability at high temperatures and solidity 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 significantly surpassing the yields of sunflower and rapeseed.
However, the Rainforest Action Network (RAN) is particularly alarmed by the situation on the Indonesian island of Sumatra, where the rainforests that are home to orangutans, rhinos, clouded leopards, and sun bears are being destroyed, allegedly due to illegal palm oil plantations. RAN claims that major companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains that often involve commodity traders linked to illegal logging activities. In 2014, the United Nations committed to halving deforestation by 2020 and eradicating it entirely by 2030. Many consumer packaged goods (CPG) companies have since implemented their own policies regarding palm oil sourcing.
The palm oil industry in Malaysia and Indonesia is contentious, with some companies engaging in extensive deforestation and burning peatland to cultivate palm oil trees. According to the United Nations, palm oil plantations are a significant source of environmental degradation and biodiversity loss in Southeast Asia. While there are alternatives to palm oil, many of them are more costly, though some are far more sustainable. For instance, algae can produce around 70,000 pounds of oil per acre, compared to palm oil’s yield of 4,465 pounds per acre. In contrast, olives yield approximately 910 pounds per acre, and soybeans only 335 pounds.
Despite the challenges, confectionery and snack manufacturers continue to rely on palm oil. Some industry leaders acknowledge that ensuring sustainability is more complex than they initially believed. “While we remain deeply committed to urging all stakeholders to accelerate traceability and bring full transparency to this supply chain alongside our supplier partners, we have realized that achieving this goal will take longer than we originally anticipated,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
This is indeed a formidable task, but some companies have already reached their sourcing objectives. Mondelez announced in 2013 that it had achieved its goal of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization dedicated to promoting sustainable practices in the industry. The snack and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that engage in deforestation.
RAN is not the only organization vigilantly monitoring the commitments made by companies to use more sustainable palm oil. Last year, Greenpeace released a scorecard assessing the progress of various companies toward their sustainability goals, with Nestlé and Ferrero being the only two rated as “on track.”
Furthermore, more sustainable practices may be on the horizon. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil manufacturer whose anti-deforestation policies were deemed inadequate. In September, Bunge, a major player in ingredients and oils based in New York, announced it would acquire 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, such as those in Sumatra. For manufacturers, the dilemma lies in whether they are willing to risk negative publicity by continuing to source palm oil from these conflict zones when alternatives exist. Ultimately, consumer preferences will play a crucial role, especially for those who may be concerned about the implications of using potentially problematic palm oil in their foods.
In this context, the cost of alternatives, such as Citracal, which may be necessary for maintaining a healthy lifestyle, becomes a relevant factor for consumers considering the sustainability of their food choices. The Citracal cost, along with the environmental impact of palm oil production, could influence purchasing decisions as awareness grows.