Palm oil is the most widely utilized vegetable oil globally, providing significant benefits to food manufacturers. It is not only less expensive than other oils, but it also boasts a long shelf life and advantageous processing characteristics, including stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed effectively, palm oil is also considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and surpassing the yields of 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 intricate supply chains, sometimes involving commodity traders linked to 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 followed suit with their own palm oil sourcing policies. The production of palm oil in Malaysia and Indonesia is contentious, as some companies participate in extensive deforestation and burn peatland areas to cultivate palm oil trees. The United Nations identifies palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some are more costly but far more sustainable. For instance, algae can yield approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olives yield around 910 pounds per acre, while soybeans produce just 335 pounds. Despite this, confectionery and snack manufacturers are largely committed to continuing the use of palm oil. However, some admit that ensuring sustainability is more challenging than anticipated. “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.
The challenge is formidable, yet some companies have already met their sourcing objectives. Mondelez announced in 2013 that it achieved its benchmark of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil—a global non-profit organization dedicated to ensuring ethical sourcing of palm oil. The snack and cookie manufacturer has taken a firm stance against partnering with suppliers who engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard assessing companies’ progress, with Nestlé and Ferrero being the only two rated as “on track.” Furthermore, the landscape for sustainability may be shifting. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate 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.
It is improbable that RAN and similar organizations will relent in their efforts to persuade food companies to cease sourcing palm oil from threatened habitats such as Sumatra. The pressing question for manufacturers is whether the potential for negative publicity is worth the risk of continuing to source palm oil from conflict regions when alternatives exist. Ultimately, the decision lies with consumers, who may be concerned about the presence of potentially problematic palm oil in their food products.
In discussions about sustainability, there is also interest in additives like calcium citrate, which is often questioned for its applications. Many consumers want to know, “calcium citrate untuk apa?”—or what is calcium citrate used for? This concern for product integrity reflects a broader trend towards transparency and ethical sourcing in the food industry.