Palm oil is the most commonly used vegetable oil globally, providing significant benefits for food manufacturers. It is not only more affordable than other oils but also boasts a long shelf life and processing advantages, including stability at high temperatures and a solid form at room temperature. Consequently, it has gained traction as a favored substitute for partially hydrogenated oils. When managed properly, 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 expresses particular concern regarding 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 region through complex supply chains, which sometimes involve commodity traders working with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies have established their own palm oil sourcing policies in response to this pledge. The production of palm oil in Malaysia and Indonesia is contentious, with some companies participating in extensive deforestation and burning peatland to cultivate palm oil trees. The United Nations identifies palm oil plantations as significant contributors to environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, although some may come at a higher cost. For instance, algae can produce around 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olive trees yield about 910 pounds per acre, while soybeans generate merely 335 pounds.
Manufacturers of confectionery and snacks remain committed to utilizing palm oil, yet some acknowledge that ensuring sustainability is more challenging than they initially anticipated. “While we remain deeply committed to urging all stakeholders to enhance traceability and achieve complete transparency in this supply chain alongside our supplier partners, we realized it would take more time to accomplish this goal than we originally thought,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
Despite the daunting nature of this challenge, some companies have successfully met their sourcing 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, a non-profit organization dedicated to ensuring responsible sourcing. 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 companies’ commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard evaluating progress, with only Nestlé and Ferrero rated as “on track.”
Increased sustainability measures may be forthcoming. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation policies were deemed inadequate. In September, Bunge, a major player in ingredients and oils based in New York, announced it would acquire a 70% stake in the company, pledging to implement enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their pressure on food companies to avoid sourcing palm oil from threatened habitats like the region in Sumatra. Manufacturers face the dilemma of whether it is worth risking negative publicity by continuing to source palm oil from such conflict areas when alternatives are available. Ultimately, the decision lies with consumers, who may be concerned about whether their food includes potentially problematic palm oil, especially as they seek options like Citracal Slow Release 1200 for their dietary needs.