Sunday, February 1, 2015

Palm Oil




Half the world is discussing palm oil related problems, while the other half is asking themselves what’s with this palm tree that is so important and creates so much negative buzz worldwide.

The fact is that this ingredient (either palm oil or palm kernel oil) is present in about 50% of what you buy/use in a daily basis: it is in your food, in your cosmetics, fuels, in your toiletries and so on. You might not see it on the labels, because it is often “hidden” behind synonyms or it comes inside another described raw material, but it is there.

Why is it so loved? It is said that palm oil is a very productive crop compared to similar ones, meaning that it produces more oil per hectare than any other substitute (RSPO* states that this palm tree needs less than half the land required by other crop to produce the same amount of oil); it excels in cooking characteristics, because it maintains its properties even under high temperatures; its special texture and absence of smell make it a perfect ingredient for several products; and it has a natural preservative effect, extending the life of products on the shelves;

Why then is there so much buzz?
It all begins in the rainforest, but let’s go through a few facts before exploring the answer:
-       In 2013, 59.6m metric tones of palm oil were produced;
-       Global production has doubled in the last decade and it is supposed to double again by 2020;
-       Expansion of emerging markets (especially in the most populous ones) is the driving force behind the increasing demand;
-       The largest producers of palm oil nowadays are in Asia. The main one is Indonesia (33.5m metric tones a year), the second largest is Malaysia (20.35m metric tones), the third one is Thailand (2.25m MT a year). Then it comes Colombia (1.02m MT a year) and Nigeria (0.93m MT a year), followed by others;
-       The largest consumers are: India (8.80m MT a year), China (6.60m MT a year), European Union (6.30m MT a year), Pakistan (2.65m MT a year), United States (1.41m MT a year), Bangladesh/Egypt (1.30m MT a year) followed by several others;
-       From 59.6m MT produced in 2013, only 5.4m MT were sold as certified sustainable palm oil.

Having said that, the following are the problems associated to the oil production:
-       Palm tree plantations in Southeast Asia have tripled in the last decade causing a high rate of deforestation in the main producers countries. The real numbers vary, but the World Resources Institute estimates that Indonesia alone has lost 6m hectares of primary forest (an area half the size of England) from 2000 to 2012;
-       GHG emission – clearing down the forest releases a high level of carbon dioxide and methane, which contributes to the global warming;
-       It has been causing habitat and biodiversity loss in the region, putting certain species in high extinction risk (local orangutans have become the flagship for sustainable palm oil campaigns);
-       Communities destruction and displacement along Indonesia and Malaysia to open space for plantation;
-       Destruction of other crop yields.

Several companies, from different business sectors, have been looking for certified palm oil production and some even claim to have their entire supply covered by responsible sourcing. The main question is if our insatiable appetite for products will allow a truly sustainable value chain, meaning: can 59.6m MT of palm oil be provided within the best practices? Besides, would exchanging crop be the solution considering that the very same problems could be applied to the next (equally) demanded oil production?

This is something to think about every time we buy toothpastes, ice creams, margarines, fried foods, soaps, body lotions, shampoos, lipsticks, etc. The main point is not necessarily to stop buying them, but to make better shopping decisions (if possible) and being knowledgeable about our consumption habits impacts.

*Roundtable Sustainable Palm Oil

Sources:
The Guardian – EU labelling changes force industry action on palm oil

The Guardian – From rainforest to your cupboard: the real story of palm oil – interactive

RSPO – About Sustainable palm oil


Photo credits: The Guardian website

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