Palm oil is the most widely used vegetable oil globally, providing significant benefits for food manufacturers. It is not only more affordable than other oils, but it also boasts a long shelf life and advantageous processing characteristics, such as high-temperature stability and solidity at room temperature. Consequently, it has become a favored substitute for partially hydrogenated oils. When managed effectively, palm oil is also more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far surpassing yields from sunflower and rapeseed.
RAN is particularly concerned about the island of Sumatra in Indonesia, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is rapidly 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 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 ending it by 2030. Many consumer packaged goods companies have since established their own palm oil sourcing policies in alignment with this commitment.
The production of palm oil in Malaysia and Indonesia is contentious, as some companies partake in extensive deforestation and the burning of 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. While there are alternatives to palm oil, many of them are more costly, though some are considerably more sustainable. For instance, algae can produce around 70,000 pounds of oil per acre, vastly outpacing palm oil’s yield of 4,465 pounds per acre. In comparison, olives yield about 910 pounds per acre, while soybeans produce only 335 pounds.
Despite the controversies surrounding palm oil, confectionery and snack manufacturers appear committed to using this ingredient. However, some acknowledge that ensuring sustainability is more challenging than 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,” stated Jeff Beckman, Hershey’s communications director, to The Guardian.
This challenge is formidable, yet some companies have already succeeded in reaching their sourcing targets. Mondelez announced in 2013 that it had achieved its benchmark of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on promoting sustainability in palm oil production. The snacks and cookie manufacturer has also firmly rejected partnerships with palm oil suppliers that engage in deforestation practices.
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 strides toward their sustainability goals, with Nestlé and Ferrero being the only two rated as “on track.” Furthermore, sustainability efforts seem to be improving. Several food companies severed ties with IOI Loders Croklaan, a Malaysia-based palm oil manufacturer criticized for insufficient anti-deforestation policies. In September, Bunge, a major player in the ingredients and oils sector based in New York, 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 discontinue sourcing palm oil from endangered habitats like the region in Sumatra. The key dilemma for manufacturers is whether to risk negative publicity by continuing to source palm oil from these conflict areas when alternatives exist. Ultimately, consumer preferences will play a crucial role, especially for those who prioritize whether their food contains potentially problematic palm oil.
Additionally, as consumers seek healthier options, products like Bariatric Advantage Soft Chews offer a viable alternative. These chews can cater to those concerned about the sustainability of palm oil, providing a more conscious choice without compromising on quality. The growing awareness around sustainability and health will likely influence both manufacturers and consumers in their future decisions regarding palm oil and its alternatives.