Palm oil is the most commonly used vegetable oil globally, providing significant advantages for food manufacturers. It is not only cheaper than other oils but also boasts a long shelf life and processing benefits, including stability at high temperatures and solidity at room temperature. Consequently, it has become a favored substitute for partially hydrogenated oils. When managed properly, palm oil is far more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans, and significantly surpassing the yields of sunflower and rapeseed.
RAN expresses particular concern regarding the Indonesian island of Sumatra, where the rainforest, home to orangutans, rhinos, clouded leopards, and sun bears, is vanishing due to what the organization claims are illegal palm oil plantations. According to RAN, companies like Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, which sometimes involve commodity traders collaborating with suppliers who engage in illegal logging practices.
In 2014, the United Nations committed to halving global deforestation by 2020 and ending it completely by 2030. Many consumer packaged goods (CPG) companies adopted their own policies for palm oil sourcing in response to this pledge. The production of palm oil in Malaysia and Indonesia is contentious, as some companies are known for extensive deforestation and burning peatland to cultivate palm oil trees. The United Nations has identified palm oil plantations as a primary contributor to environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, although many are more costly. 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, olives yield about 910 pounds per acre, while soybeans only generate 335 pounds. Despite this, confectionery and snack manufacturers seem committed to using palm oil, though some admit that achieving sustainability is proving more challenging than expected. Jeff Beckman, Hershey’s communications director, stated to The Guardian, “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.”
This challenge is daunting, yet some companies have already reached their sourcing objectives. Mondelez announced in 2013 that it achieved its benchmark of using palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil, an international nonprofit organization dedicated to ensuring responsibly sourced palm oil. This snacks and cookie manufacturer has also taken a firm stance against partnering with palm oil suppliers engaged in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard evaluating which companies were making progress toward their sustainability goals, with Nestlé and Ferrero being the only two rated “on track.”
More efforts toward sustainability may be forthcoming. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysia-based palm oil supplier whose anti-deforestation measures were deemed inadequate. In September, Bunge, a New York-based giant in ingredients and oils, announced its acquisition of a 70% stake in the company and pledged enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will ease their pressure on food companies to stop sourcing palm oil from endangered habitats like those in Sumatra. The question for manufacturers is whether it is worth risking negative publicity to continue sourcing palm oil from these conflict areas 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, such as those found in Twinlab calcium citrate caps plus magnesium. As awareness grows, consumers might favor products that prioritize sustainable sourcing, influencing manufacturers to reconsider their reliance on palm oil.