Palm oil stands as the most widely utilized vegetable oil globally, providing significant advantages for food producers. It is not only more affordable than other oils but also boasts a long shelf life, high-temperature stability, and solidity at room temperature. Consequently, it has gained popularity as a substitute for partially hydrogenated oils. When managed properly, palm oil is also significantly more land-efficient than other vegetable oils, yielding ten times more oil per hectare compared to soybeans, and far exceeding the yields from sunflower and rapeseed.
Organizations like RAN are particularly concerned about the situation on the Indonesian island of Sumatra, where the rainforest, home to orangutans, rhinos, clouded leopards, and sun bears, is vanishing due to what the group claims are illegal palm oil plantations. RAN reports that companies such as Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, which sometimes involve commodity traders connected to suppliers engaged in illegal logging activities.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eliminating it by 2030. Many consumer packaged goods (CPG) companies adopted their own palm oil sourcing policies in line with this pledge. However, the production of palm oil in Malaysia and Indonesia is contentious due to some companies’ practices of extensive deforestation and the burning of peatlands to establish palm oil plantations. The UN has identified palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While alternatives to palm oil exist, some are pricier, though many are far more sustainable. For instance, algae can produce 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 only produce about 335 pounds.
Despite the controversies, confectionery and snack manufacturers remain committed to using palm oil, though some acknowledge that ensuring sustainable sourcing is more challenging than they 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, in an interview with The Guardian.
This presents a significant challenge, yet some companies have successfully met their sourcing goals. In 2013, Mondelez announced that it achieved its target of sourcing 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on responsible sourcing. The snacks and cookie manufacturer has also taken a strong stance against partnering with palm oil suppliers who engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard assessing companies’ progress toward their sustainability goals, with Nestlé and Ferrero being the only two rated as “on track.”
Increased sustainability efforts may be on the horizon. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation policies were deemed inadequate. In September, New York-based Bunge, a major player in the ingredients and oils sector, announced a 70% stake acquisition in the company, pledging enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their pressure on food companies to abandon palm oil sourced from threatened habitats like those in Sumatra. Manufacturers face the dilemma of whether the potential for negative publicity is worth continuing to source palm oil from these conflict areas, especially when alternatives like ultra cal citrate plus are available. Ultimately, the decision rests with consumers, who may be concerned about the implications of using palm oil that could be problematic.