Palm oil is the most commonly utilized vegetable oil globally and presents significant benefits for food manufacturers. It is not only less expensive than other oils but also boasts a long shelf life and processing advantages like stability at high temperatures and solidification at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also considerably more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans and significantly surpassing the outputs from sunflower and rapeseed.
RAN is particularly worried about the situation in Sumatra, Indonesia, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is vanishing due to what the organization claims are illegal palm oil plantations. RAN reports that Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, sometimes involving commodity traders who deal with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving deforestation by 2020 and ending it entirely by 2030. Numerous consumer packaged goods (CPG) companies aligned themselves with this pledge by implementing their own palm oil sourcing policies. The production of palm oil in Malaysia and Indonesia is contentious because some corporations partake in extensive deforestation and burn peatland to cultivate palm oil trees. According to the United Nations, palm oil plantations significantly contribute to environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, although they can be pricier. For instance, algae can yield approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In comparison, olives generate about 910 pounds per acre, while soybeans produce merely 335.
Manufacturers of confectionery and snacks appear committed to using palm oil; however, some acknowledge that ensuring sustainability has proven more challenging than anticipated. “While we are deeply committed to urging all stakeholders to enhance traceability and achieve full transparency in this supply chain alongside our supplier partners, we have realized it will take longer than we initially expected to reach this goal,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
Despite the daunting challenge, some companies have successfully met their sourcing objectives. Mondelez announced in 2013 that it achieved its target of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil — an international non-profit organization dedicated to ensuring responsible sourcing of this ingredient. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers who engage in deforestation practices.
RAN is not alone in monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard assessing which companies were making strides toward their sustainability goals, with only Nestlé and Ferrero rated as “on track.”
Encouragingly, last year several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil manufacturer criticized for inadequate anti-deforestation policies. In September, New York-based Bunge, a major player in the ingredients and oils sector, announced its acquisition of a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will ease their pressure on food companies to cease sourcing palm oil from endangered habitats like those in Sumatra. The critical question for manufacturers is whether the potential backlash from negative publicity is worth continuing to source palm oil from these contentious areas when there are alternatives available. Ultimately, it comes down to consumer preferences; many consumers may be concerned about whether their food contains potentially problematic palm oil, especially when considering options like calcium citrate gummies sugar free. These alternatives could appeal to those seeking more sustainable choices in their diets.