Palm oil is the most extensively utilized vegetable oil globally and presents significant advantages for food producers. It is not only more affordable than other oils, but it also boasts a long shelf life and processing advantages, including stability at high temperatures 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 significantly more land-efficient than other vegetable oils, yielding up to 10 times more oil per hectare than soybeans and greatly surpassing the yields from sunflower and rapeseed.
RAN is particularly concerned about the Indonesian island of Sumatra, 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 area through intricate supply chains that sometimes involve commodity traders dealing with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving deforestation rates by 2020 and completely stopping it by 2030. Many consumer packaged goods (CPG) companies adopted their own palm oil sourcing policies in line with this pledge. The palm oil industry in Malaysia and Indonesia is controversial due to some companies’ widespread deforestation practices and the burning of peatland to cultivate palm oil trees. The United Nations has stated that palm oil plantations are a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, many are more expensive, though some are significantly more sustainable. For instance, algae can produce approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In comparison, olives yield about 910 pounds per acre, and soybeans only produce 335 pounds.
Manufacturers of confectionery and snacks seem determined to continue using palm oil. However, some acknowledge that ensuring sustainability proves to be more challenging than they 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,” said Jeff Beckman, Hershey’s communications director, in a statement to The Guardian.
Despite the daunting challenges, some companies have already reached their sourcing goals. Mondelez announced in 2013 that it achieved its benchmark of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on ensuring responsible sourcing of this ingredient. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers involved in deforestation.
RAN is not the only organization monitoring companies’ commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating which companies were making headway toward their objectives. The only two rated as “on track” were Nestlé and Ferrero.
Sustainability efforts may be gaining momentum. Last year, multiple food companies severed ties with IOI Loders Croklaan, a Malaysia-based palm oil manufacturer whose anti-deforestation measures were deemed inadequate. In September, New York-based Bunge, a major player in the ingredients and oils sector, announced it would acquire a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease pressuring food companies to avoid sourcing palm oil from endangered habitats like those in Sumatra. The key question for manufacturers remains whether the risk of negative publicity is worth it to continue sourcing palm oil from these conflict areas when alternatives exist. Ultimately, the decision lies with consumers, who may be concerned about whether their food contains potentially problematic palm oil. Additionally, products enriched with calcium citrate 250 mg may offer a more sustainable option for health-conscious consumers looking for alternatives.