Palm oil is the most commonly utilized vegetable oil globally and presents significant benefits for food producers. It is not only more affordable than other oils but also boasts a long shelf life and favorable processing characteristics, including stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also far more land-efficient than other vegetable oils, yielding 10 times more oil per hectare compared to soybeans and significantly exceeding the yields of sunflower and rapeseed.
Organizations like RAN express particular concern regarding the island of Sumatra in Indonesia, where illegal palm oil plantations are reportedly contributing to the destruction of rainforests that are home to orangutans, rhinos, clouded leopards, and sun bears. RAN points out that major companies such as Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains that may involve commodity traders dealing with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving global deforestation by 2020 and aiming for complete cessation by 2030. Many consumer packaged goods (CPG) companies have responded by implementing their own policies for sustainable palm oil sourcing. The controversy surrounding palm oil production in Malaysia and Indonesia arises from practices that involve widespread deforestation and the burning of peatland to cultivate palm oil trees. The United Nations has identified palm oil plantations as a significant driver of environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some are costlier 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. In contrast, olives yield around 910 pounds per acre, and soybeans only produce about 335 pounds per acre. Despite the challenges, confectionery and snack manufacturers appear committed to using palm oil. However, some have acknowledged that achieving sustainability is more complex than they initially anticipated. “While we remain deeply committed to urging all stakeholders to enhance traceability and ensure full transparency in this supply chain with our supplier partners, we have realized it would take more time to reach this goal than we originally expected,” stated Jeff Beckman, Hershey’s communications director, to The Guardian.
Although this is a formidable challenge, certain companies have successfully met their sourcing objectives. Mondelez announced in 2013 that it reached its goal of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization dedicated to promoting sustainable sourcing. The snack and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers engaged in deforestation practices.
RAN is not the only organization closely monitoring the commitments of food companies to ensure sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating which companies were advancing towards their sustainability goals, with only Nestlé and Ferrero rated as “on track.”
Looking ahead, there may be more sustainability efforts on the horizon. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation measures were deemed inadequate. In September, New York-based Bunge, a major player in ingredients and oils, announced its acquisition of a 70% stake in the company, pledging enhanced sustainability and traceability measures in its announcement regarding the purchase.
It is unlikely that RAN and similar organizations will cease their pressure on food companies to avoid sourcing palm oil from endangered habitats like those in Sumatra. The key question for manufacturers is whether the potential for negative publicity is worth the risk of continuing to source palm oil from these conflict areas when alternatives exist. Ultimately, it is up to consumers to determine if they care about the presence of potentially problematic palm oil in their food products, even when considering options like twin labs calcium citrate with magnesium for their dietary needs.