Palm oil is the most commonly used vegetable oil globally, providing significant advantages for food manufacturers. It is not only more affordable than other oils but also boasts a long shelf life and processing benefits, such as stability at high temperatures and a solid state at room temperature. Consequently, it has emerged as a favored alternative to partially hydrogenated oils. When managed effectively, palm oil is also much more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far surpassing the yields from sunflower and rapeseed.
RAN is particularly alarmed by the situation in Indonesia’s Sumatra, where the rainforest—habitat for 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 complex supply chains that sometimes involve commodity traders working with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies have aligned their palm oil sourcing policies with this pledge. However, palm oil production in Malaysia and Indonesia remains contentious, as some companies partake in extensive deforestation and the burning of peatland to cultivate palm oil trees. The UN identifies palm oil plantations as significant contributors to environmental degradation and loss of biodiversity in Southeast Asia.
There are alternatives to palm oil, albeit at a higher cost, with some being much more sustainable. For instance, algae can produce approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olives yield about 910 pounds per acre, while soybeans produce a mere 335 pounds.
Despite the challenges, confectionery and snack manufacturers seem determined to continue using palm oil. However, some acknowledge that ensuring sustainability is more complex than they initially thought. Jeff Beckman, Hershey’s communications director, stated in an interview with The Guardian, “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.”
Although this is a significant challenge, certain companies have already met their sustainability goals. Mondelez announced in 2013 that it had achieved its benchmark of using palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil, an international not-for-profit organization focused on responsible sourcing. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that engage in deforestation practices.
RAN is not the only organization monitoring companies’ commitments to sustainable palm oil sourcing. 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 soon be implemented. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil manufacturer criticized for insufficient anti-deforestation policies. In September, New York-based Bunge, a major player in the ingredients and oils sector, announced it would acquire a 70% stake in the company, pledging enhanced sustainability and traceability measures in its announcement.
It is unlikely that RAN and similar organizations will relent in their pressure on food companies to cease sourcing palm oil from endangered habitats, such as those in Sumatra. The critical question for manufacturers is whether the risk of negative publicity is worth it to continue sourcing palm oil from these conflict areas when viable alternatives are available. Ultimately, the decision rests with consumers, who may be concerned about the implications of consuming products containing potentially problematic palm oil, as well as which brands, such as the calcium citrate best brand, they choose to support.