Palm oil stands as the most extensively utilized vegetable oil globally, providing significant advantages for food producers. It not only presents a lower cost compared to other oils but also boasts a lengthy shelf life and beneficial processing attributes, such as stability at high temperatures and solidity at room temperature. This combination has led to its popularity as a substitute for partially hydrogenated oils. When managed correctly, palm oil is also considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far exceeding the outputs from sunflower and rapeseed.
RAN is particularly alarmed by the situation on Indonesia’s Sumatra island, 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 companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains that can involve commodity traders working with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies followed suit with their own palm oil sourcing policies. The production of palm oil in Malaysia and Indonesia has drawn criticism due to the practices of some companies that conduct extensive deforestation and burn peatland to cultivate palm oil trees. The United Nations asserts that palm oil plantations are a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
Alternatives to palm oil do exist, although some are pricier. For instance, algae can yield approximately 70,000 pounds of oil per acre, contrasting sharply with palm oil’s 4,465 pounds per acre. By comparison, olives yield about 910 pounds per acre, while soybeans produce just 335. Despite the availability of alternatives, manufacturers of confectionery and snack products seem determined to continue using palm oil. However, some acknowledge that ensuring sustainability is proving to be more challenging than they initially thought. “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, in an interview with The Guardian.
This is undoubtedly a daunting challenge, but some companies have already met their sourcing objectives. Mondelez announced in 2013 that it had achieved its target of using palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil (RSPO), an international not-for-profit organization focused on ensuring sustainable sourcing of palm oil. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that utilize deforestation practices.
RAN is not alone in monitoring corporate commitments to more sustainable palm oil usage. Last year, Greenpeace released a scorecard assessing the progress of various companies towards their sustainability goals, 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 manufacturer criticized for insufficient anti-deforestation policies. In September, Bunge, a New York-based ingredients and oils giant, announced its acquisition of a 70% stake in the company, pledging enhanced sustainability and traceability measures moving forward.
It is unlikely that RAN and similar organizations will cease their pressure on food companies to avoid sourcing palm oil from threatened habitats like those in Sumatra. The challenge for manufacturers lies in determining whether the potential for negative publicity is worth the continued sourcing of palm oil from contentious areas when alternatives are available. Ultimately, the decision rests with consumers, who may be concerned about the implications of consuming products containing potentially problematic palm oil. Meanwhile, as people consider their dietary choices, they may also seek products fortified with beneficial ingredients, such as those containing 1000 mg calcium citrate, to support their health and well-being.