The Palm Oil Dilemma for Consumers

Before consumers buy products they are going to eat or drink, they are beginning to turn them around to check for the added sugars, genetically engineered ingredients, and high fructose corm syrup they want to avoid. The palm oil they find listed in snack foods, as well as in ice cream and other products, also is an ingredient in detergents and beauty products. Africans cook with palm oil, and a woman from Nigeria told me it could control high blood pressure. This widespread use results in a constant pressure to expand palm oil plantations and the following unintended consequences.

• Deforestation of rain forests means fewer carbon emissions can be absorbed to limit climate change.
• Deforestation destroys the tropical forest habitats of endangered species, such as orangutans, rhinos, tigers, and elephants in Sumatra, Indonesia. Plus, roads built into forests enable illegal logging and exporters to reach the rare birds that become part of the underground trade in exotic creatures. 
• Deforestation in parts of Indonesia helped cause floods, according to the World Bank.
• Fires used to clear Indonesian oil palm plantations in 2015 caused the smoke that resulted in respiratory problems in Indonesia, Malaysia, and Singapore.
• Although corporations make commitments not to use palm oil from suppliers accused of illegal deforestation and from uncertified mills, they often only honor these commitments when an NGO or other groups uncovers a violation or local law enforcement acts.
• Labor is exploited; living and working conditions on plantations are bad. Migrant laborers from Bangladesh, for example, who work on the palm oil plantations in Malaysia often owe third party company recruiters debts they cannot pay. They find they are like prisoners working seven days a week after being forced to surrender their passports.
• Needed food production decreases when farmers switch to growing oil palm. Their debts rise as they purchase seed and fertilizer from the palm oil companies they supply.
• Expansion of palm oil plantations which encroach on village farm land and grazing pastures leads to conflict. 

Ravenous demand for palm oil from Indonesia and Malaysia, the countries that produce 80% of the world's supply, has not gone unnoticed in Brazil, where research shows almost half of the country's land area is suitable for growing oil palm. At the moment, most of Brazil's palm oil comes from the Amazon state of Para, where plantations employ about 20,000. As in Indonesia and Malaysia, an increase in palm oil production raises fears of illegal deforestation and endangering the biodiverse ecosystem. Rising land prices already have led to land ownership conflicts and even murder.

Relying on Indonesia's environmental laws, eco-warriors now identify illegal palm oil plantations on protected National Park land listed as a UNESCO World Heritage Site. Spotters tell owners of illegal plantations to return the land to authorities or face prosecution. They then cut down each oil palm. In about five years, replanted seedlings begin to help forests recover unless sun burns out young plants or elephants trample them. Altogether, it can take 20 to 200 years for forests to reach their original growth.

Other palm oil players also are determined to combat the effect of deforestation on climate change and to protect endangered animals, birds, and plants. Besides groups, such as the Roundtable on Sustainable Palm Oil (RSPO) that uses an oil palm symbol to identify "Certified Sustainable Palm Oil," the Environmental Investigation Agency (EIA), Greenpeace, the Rainforest Action Network, and Friends of the Earth, banks that finance palm oil plantation owners and investors in palm oil companies have begun to show greater concern about backing firms engaged in deforestation. When the Noble Group, owner of palm oil's Noble Plantations, prepared to issue a bond to finance clearing pristine rain forest in Papua, Indonesia, the HSBC bank involved in the bond issue asked RSPO to investigate charges that development on Noble's concession was about to violate RSPO standards. As a result, Noble's spokesperson announced work on Papua's plantations was on hold while sustainable analysis was pending. Other banks also have begun to require independent verification that palm oil borrowers comply with no deforestation, no peat, and no exploitation policies.

In the United States, the Ceres sustainability organization issued an "Engage the Chain" report to alert investors to the environmental and social threats posed by companies that rely on palm oil and other commodity suppliers.

Negatives associated with palm oil create a search for alternatives. But when the Ecover cleaning company produced a new laundry liquid using oil from genetically modified algae, customers refused to buy it. In the UAE, experiments show a species of alga that grows in fresh and salt water naturally produces the fatty palmitic acid found in palm oil. The University of Bath is experimenting with a yeast that has properties similar to palm oil that can grow in municipal, supermarket, or agricultural waste rather than on land. To date, however, substitutes, including rapeseed and coconut oil, cannot compete with less expensive palm oil that sells from $500 to $1,200 a ton, unless customers begin to recognize the non-price benefits of avoiding palm oil.

When consumers turn around a product and spot palm oil as an ingredient, what might they do?

(Also see the earlier post, "Long Supply Lines Foster Abuses").