Palm oil stands as the most widely utilized vegetable oil globally, offering significant advantages for food manufacturers. It is not only more cost-effective than other oils, but it also boasts a long shelf life and advantageous processing characteristics, such as stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also notably more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans and significantly surpassing the yields of sunflower and rapeseed.
However, RAN expresses particular concern regarding the Indonesian island of Sumatra, where illegal palm oil plantations are reportedly contributing to the loss of rainforest habitats for orangutans, rhinos, clouded leopards, and sun bears. According to RAN, companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains, sometimes involving commodity traders who deal with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies have since implemented their own palm oil sourcing policies in line with these goals. The palm oil industry in Malaysia and Indonesia is fraught with controversy due to practices involving extensive deforestation and the burning of peatland to establish palm oil plantations. The United Nations identifies palm oil cultivation as a major contributor to environmental degradation and biodiversity loss in Southeast Asia.
Alternatives to palm oil exist, although some are pricier. For instance, algae can produce approximately 70,000 pounds of oil per acre, which far exceeds 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.
Manufacturers of confectionery and snacks appear committed to continuing the use of palm oil. Nevertheless, some acknowledge that ensuring sustainability is proving to be more challenging than anticipated. “While we remain deeply committed to pushing all stakeholders to accelerate traceability and bring full transparency to this supply chain with our supplier partners, we have realized that achieving this goal will take longer than we originally expected,” stated Jeff Beckman, communications director at Hershey, in an interview with The Guardian.
Despite the daunting challenge, several companies have already met their sourcing objectives. 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 not-for-profit organization dedicated to promoting sustainable sourcing. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that engage in deforestation.
RAN is not the only organization monitoring corporate compliance with sustainability commitments. Last year, Greenpeace released a scorecard assessing the progress of various companies toward their sustainability goals, with Nestlé and Ferrero being the only two rated as “on track.”
Moreover, advancements in sustainability may be on the horizon. In the past 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 New York-based giant in the ingredients and oils sector, 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 cease their efforts to pressure food companies to discontinue sourcing palm oil from threatened habitats, such as those in Sumatra. The pressing question for manufacturers is whether the potential backlash from negative publicity is worth the risk of sourcing palm oil from these conflict zones when alternatives are available. Ultimately, consumers will play a crucial role, as they may be increasingly concerned about whether their food contains palm oil that poses ethical or environmental dilemmas.
In this context, products like liquid calcium magnesium citrate plus vitamin D3 may serve as appealing alternatives for those seeking sustainable options in their dietary choices, highlighting the broader consumer demand for ethically sourced ingredients.