Palm oil is the most widely utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more cost-effective than other oils, but it also boasts a lengthy shelf life and beneficial processing characteristics, such as stability at high temperatures and solid consistency at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is considerably more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans, and far exceeding production 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 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 intricate supply chains, sometimes involving commodity traders connected to suppliers engaged in illegal logging activities.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies have established their own palm oil sourcing policies in response to this pledge. However, palm oil production in Malaysia and Indonesia is contentious, as some companies are involved in extensive deforestation and the burning of peatlands to cultivate palm oil trees. The United Nations identifies palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, although some are pricier. 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 around 910 pounds per acre, while soybeans only generate about 335 pounds. However, manufacturers of confectionery items and snacks remain committed to using palm oil. Some acknowledge that ensuring sustainability within their supply chains is more challenging than initially 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.
Despite these challenges, some companies are already meeting their sourcing targets. In 2013, Mondelez announced that it had achieved its benchmark of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international nonprofit organization dedicated to ensuring the ingredient comes from responsible sources. 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 whether companies are fulfilling their promises to make palm oil use more sustainable. Last year, Greenpeace released a scorecard highlighting the progress of various companies, with Nestlé and Ferrero being the only two rated “on track.” Furthermore, 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 giant in ingredients and oils, announced a 70% stake acquisition in the company, pledging to implement greater 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 like those on Sumatra. The dilemma for manufacturers is whether the risk of negative publicity is worth continuing to source palm oil from these controversial areas when alternatives exist. Ultimately, the decision rests with consumers, who may be concerned about whether their food contains potentially problematic palm oil. Additionally, when it comes to children’s health, parents may prefer options that incorporate nutrients like calcium citrate for kids, ensuring that their dietary choices are both responsible and beneficial.