Palm oil stands as the most widely utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more affordable than alternative oils but also boasts a lengthy shelf life and processing benefits like high-temperature stability and solid form 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 far exceeding the outputs from sunflower and rapeseed.
RAN has expressed particular concern for the Indonesian island of Sumatra, where the rainforests that serve as habitats for orangutans, rhinos, clouded leopards, and sun bears are dwindling due to what the organization claims are illegal palm oil plantations. RAN reports that major companies such as Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, occasionally involving commodity traders working with suppliers who engage in illegal logging practices.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies adopted this pledge with their own policies regarding palm oil sourcing. The production of palm oil in Malaysia and Indonesia is contentious as certain companies are implicated in extensive deforestation and the burning of peatland to establish palm oil plantations. The UN has identified palm oil cultivation as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some may come at a higher cost. For instance, algae can yield around 70,000 pounds of oil per acre, significantly surpassing palm oil’s 4,465 pounds per acre. In comparison, olives produce about 910 pounds per acre, and soybeans yield just 335 pounds. Despite this, confectionery and snack manufacturers appear committed to retaining palm oil in their products. However, some acknowledge that ensuring sustainability has proven more challenging than they initially expected. 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.”
This presents a formidable challenge, yet some companies have already reached their sustainability goals. Mondelez announced in 2013 that it achieved its target of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international organization dedicated to sourcing palm oil responsibly. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers who engage in deforestation.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard evaluating which companies were making strides toward their goals, with Nestlé and Ferrero being the only two rated as “on track.”
Further sustainability improvements may be on the horizon. Last year, 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 initiatives.
It seems unlikely that RAN and similar organizations will cease their efforts to pressure food companies into discontinuing palm oil sourced from threatened habitats, such as those in Sumatra. The dilemma for manufacturers lies in whether it is worth the risk of negative publicity to continue sourcing palm oil from these contentious areas when alternatives exist. Ultimately, the decision rests with consumers, who may be concerned about the presence of potentially problematic palm oil in their food products.
Additionally, as consumers become increasingly conscientious about their choices, products such as calcium citrate tablets Cipla are gaining popularity, reflecting a broader trend towards sustainability and health in the food industry. The inclusion of such alternatives showcases the growing demand for transparency and ethical sourcing in consumer goods.