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").

Long Supply Lines Foster Abuses

Regarding abuses related to the $88 billion palm oil industry, Rachel Barre, who is L'Oreal's sustainable sourcing manager, acknowledged her company is far removed from the plantation level. And one palm oil industry observer noted it is impossible to delink one company's supplies from the continued deforestation of the industry as a whole.

     Since, along with plantations, small farmers produce 40% of the world's palm oil, abuses at the source of this raw material are widespread. Polluting smoke from the fires used to clear palm oil plantations in Indonesia and Malaysia spreads far beyond local areas and deforestation robs the world of endangered wildlife.

     In lengthy supply lines, problems associated with land acquisition, working conditions, pay, pollution, and deforestation are found where plantations, logging, mines, and textile factories source the food and goods sold to consumers thousands of miles away. Indonesia represents a good example. President Joko Widodo presides over a country of 13,000 islands. He is winning public support for a construction boom in needed roads, railways, bridges, airports, and power plants that the previous government of Suharto failed to address. Yet, projects are hindered by laws and regulatory agencies associated with each project, skilled labor shortages, land acquisition in heavily populated areas, lack of private investment necessitating growing public debt, and lax worker safety requirements.

     Pressured by distant retailers to cut costs and speed up delivery, the clothing manufacturers in China, India, and Indonesia that work with viscose/rayon fibers become major polluters. On one hand, the silk alternative is heralded as a sustainable option, because it is made from the fast-growing, soft wood of beech, pine, and eucalyptus trees. But the process of turning wood pulp into viscose requires sodium hydroxide, sulfuric acid, and carbon disulphide, a chemical linked to heart disease, birth defects, mental health problems, and cancer. Air and wastewater exposed to these chemicals harm factory workers, local residents, and fish.

     What can be done?

1. Organizations, such as the Roundtable on Sustainable Palm Oil, Palm Oil Innovation Group, Forest Stewardship Council, Proforest, Fair Trade Federation, and Sustainable Apparel Coalition, assemble experts to monitor industry conditions, devise best practices, and develop certification programs. Some organizations create logos consumers can use to identify responsible producers.

2. When governments are approached to grant large scale land concessions, they are in a position to require plantation owners to obtain (without manipulation by offering jobs before the concession is granted) consent from local communities, to assure protection of traditional rights to land that is owned, occupied, or used to produce food needed by the local population, and to agree to penalties for violating stipulated working conditions and environmental protections.
     Olam International's palm oil operation in Gabon offers some insight. The company holds a government lease on land for 15 years. Although those who wanted to farm outside the concession could continue to do so, 95% of the local population took jobs with Olam. The company invests $1.6 million a month in community healthcare and development. Yet it took pressure from environmental groups to cause Olam to announce even a one year moratorium on deforestation.

3. Before they suffer bad publicity, companies at the end of supply chains need to realize consumers are becoming better informed about the dangers associated with certain products and industry practices. The need to end pressure on suppliers who cut corners to meet demands and to designate someone to root out untrustworthy intermediaries suppliers may hire to avoid responsibilities is likely to grow. Touting a palm-oil free product became a contested, competitive selling claim in a Belgian court. The supermarket chain, Delhaize, advertised its Choco spread was better for the planet and health than Ferrero's Nutella, a spread that contains palm oil, Although Ferrero successfully argued against Delhaize's claim, the case showed how some marketers have begun to recognize consumers are growing wiser about everything involved with the food they eat and the products they use.

4. With technical, financial, and other support from governments, private sources, and non-profit organizations, more small scale entrepreneurs need opportunities to enter supply chains.

5. To ensure their survival, critically endangered and endangered wildlife, such as gorillas, chimpanzees, bonobos/pygmy chimpanzees, saolas, and orangutan, often need the protection of "no-go zones" and wildlife corridors in concession territories. Palm oil plantations in Cameroon and the Republic of the Congo, for example, already have destroyed chimpanzee and gorilla habitats. Company and government wardens and scientists need to prevent poaching and to monitor animal health in land concessions.

Of course, abuses can be avoided by shortening or controlling supply lines. The missionary nuns who  grow and sell tomatoes to their local communities in Africa short circuit the supply chain (See the  earlier post, "Celebrate Uplifting Efforts to Promote Self Reliance in Africa."). The nonprofit organization, serrv (serrv.org), finds artisans and farmers in areas of great poverty in countries such as Ghana and South Africa, helps them with marketing suggestions to make their goods more attractive in developed countries, and sells these products through catalogs and the retail stores they own.  

Africans Learn to Play the Game

Whether a child is playing Candy Land or trading Pokemon cards, an innocent young child can be tricked into trading a valuable card for one less useful. But as they learn how to play the game this kind of trickery no longer works. Africa has a lot of valuable "cards," and Africa will learn, and is learning, not to be fooled by those who take advantage of corruption, questionable land titles, promises of employment, and pretend friendships.

     Since Africa has valuable mineral deposits, the continent has been a target of questionable mining deals. After the Democratic Republic of the Congo seized First Quantum Minerals, the close relationship of an Eurasian Natural Resources Corporation (ENRC) partner with Congo President Joseph Kabila caused First Quantum to question the financial deal that enabled ENRC to purchase its seized copper assets. The legal dispute did not end after Luxembourg-based Eurasian Resources Group (ERG) acquired ENRC and strengthened its position in Africa's copper belt. In fact, ERG's stake in the former ENRC became even more valuable after the Industrial & Commercial Bank of China (ICBC) and China's Export-Import Bank provided $700 million to build the copper and cobalt project that made ERG the world's largest producer of the cobalt used in batteries. The UK's Serious Fraud Office (SFO) continues to investigate ENRC's original deal with the Democratic Republic of the Congo.

     In Hia, Ghana, Bishop Afoakwah walked through mounds of dirt and deep puddles to do his own investigation of a gold mine digging a massive pit on church land. Earlier, after one of the mine's earthmoving machines cut an electrical line that left the town without power, Bishop Afoakwah had met with local chiefs. He understood the church held a legal deed to the land that had been donated by a chief for the purpose of building a clinic and nursing school. During his meeting, the bishop learned various chiefs claimed to protect land for other chiefs and, taking advantage of the interwovern land rights and the high per ounce price of gold, a Chinese mine owner provided a payoff to secure a mining concession on the church's land. At the gold mine, workers said a "Mr. Kumar" owned the Hia site. Two Chinese engineers dashed into the bush, when they saw the bishop approaching. Ghana's Minerals Commission only has eight officials to investigate the country's illegal mining and an incomplete database of mining concessions. President Nana Akufo-Addo, who took office in January, 2017, put Ghana's Chinese miners on notice that he intends to enforce laws governing gold mining.

     Not only have gold mining operations destroyed agricultural land that has fed local farmers for generations, but heavy machinery has buried and severely injured untrained workers and health-damaging cyanide and mercury used to extract gold from stone have contaminated air and water. Farmers who sell their land to miners enjoy only a short-term gain that lasts a few years. Even if the land is returned to them after the mine is exhausted, the three feet of top soil are destroyed and the poor quality clay soil underneath cannot support a family. Yet, workers who fear losing salaries from mining jobs willingly risk their health and ignore environmental consequences. In fact, miners have thrown rocks at inspectors and even killed a fleeing official by rolling over him with a car.

     The path to legal mining in Ghana and in other developing countries is a difficult one. It requires learning "to play the game" without corruption and payoffs, with only those foreign investors willing to train employees and commit to some community development, and with activists like Bishop Afoakwah who are willing to take on lengthy court battles for damages done to the land by illegal miners. In the end, Africans will come to the same conclusion that Cardinal Peter Turkson, archbishop emeritus of Cape Coast, Ghana, did. "It is...unjustifiable for developing countries to fuel the development of richer countries at the cost of their own present and future."

     While Ghana continues to sort out land ownership issues affecting local gold miners, a group of 33 illegal gold miners in Uganda spent four years forming the first gold mine the UK's Fairtrade organization certified in Africa. The Syanyonja Artisan Miners Alliance (SAMA) now boasts: 1) a timbered pit unlike the dangerous open pits where dirt walls collapse, when heavy downpours swamp quarries and whole families of miners, and 2) gold extraction processes that employ proper handling of mercury and cyanide. SAMA's certified gold mine offers small-scale coop members the prospect of premium prices, savings, a local health center, and subsidized school fees. Now that the association pays taxes SAMA members find they have more government influence. SAMA also benefits from the "I Do" campaign sponsored by the Fairtrade Foundation's focus on commodities campaign in the UK, which alerts couples to choose Fairtrade Gold wedding bands.

Earlier posts involving Africa's resources include:

• Wood: Don't Take Any Wooden Nickels, Uncover the Economic Value of Wood
• Coffee: Invest in Africa's Agricultural Future; Coffee Prices Going Up; Allowances Going Down?
• Cocoa: Become A Discriminating Chocolate Consumer, Chocolate Tasting Party and More; Chocolate's Sweet Deals
• Palm oil: Can Small Farms End Poverty?
• Oil: Nigeria's New Beginning
• Diamonds: Diamond Flaws

Also see the earlier post: Why Will Africa Overcome Poverty?"

   
   

All I Want for Christmas Is Seeds

Who knew elves occasionally take a break from making toys to store seeds in Santa's warehouse. Although many put Syria on their naughty lists, in October, 2015 the Svalbard global seed vault half way between the north pole and Norway responded to an urgent request from the International Center for Agricultural Research in Dry Areas (Icarda) and sent the 128 crates of wheat, barley lentil, chickpea, fava bean, pea, and legume seeds Syria needed.

     After seeds for another 70,000 crops were added to the Global Seed Vault in 2018, Svalbard now stores 1,059,646 seeds. 

     Svalbard, known as the "Noah's Ark of seeds," is just one of the storehouses for the diversity of seeds needed to grow fruits, vegetables, and grains; the collections of plants, like apples and grapes, that are not cultivated from seeds; and even the genetic material essential to maintain the bees that pollinate many crops.

     Individual farmers also are essential in the process of ensuring a lasting food supply. On one of his "Parts Unknown" TV programs, David Bourdain found restaurant owners in the US South have been searching for the seeds that grew foods popular before the US Civil War. They located seeds that had come down through the families of former slaves, when war wiped out the seeds held by plantation owners. When kids start collecting and drying seeds for diverse crops, they also will be getting involved in the vital task of protecting the world's food supply.

 Why is the world's food supply in danger? There are many reasons:

• Wars destroy farms. Research stations in Lebanon and Morocco are working to produce seeds and saplings to resupply Syria's farmers.
• Globalization of agriculture has concentrated seed production in companies that abandon many plant varieties in order to produce uniform, high-yield varieties. (See the earlier post, "World (Food) Expo. Hybrid Crops & New Farming Practices.")
• Pests and diseases can wipe out crops. (See the earlier post, "The Bees and the Birds.")
• Global warming has reduced the area suitable for farming. (See the earlier post, "Coffee Prices Going Up; Allowances Going Down?")
• Farmers have moved to urban areas to find work.
• Without a market, farmers have stopped growing foods that have gone out of favor when diets shifted to wheat, rice, potatoes, maize, soybeans, and palm oil.
• Deforestation has removed forests where plants thrive and evolve.

Kids used to get oranges and apples in their Christmas stockings. To be sure these fruits continue to exist, the world is counting on Santa to bring these goodies along with toys and candy.

Can Small Farms End Poverty?

Before performers, men, women and young people gather, at the Global Citizen Festival in New York City's Central Park on September 26, for the purpose of ending extreme poverty, let's look at a few of the factors contributing to world hunger. Silo thinking, where everyone focuses on their own problems and solutions, is undermining the need to feed and employ people, provide export revenue from agriculture, and protect the environment.

     Small farms provide employment that prevents a country's rural population from flocking to urban areas that are not ready to provide sufficient jobs, sanitation, housing, transportation, and education. David Hoyle, deputy director of ProForest has pointed out how small farms would benefit from governments willing to engage in land-use planning. What governments need to do is designate specific areas where: 1) villagers can farm and live, 2) concessions are leased to large scale export producers of, for example, palm oil and timber, and 3) forested areas needed to sop up greenhouse gases are protected. Water use planning to prevent pollution and supply sufficient water for sanitation, cooking, and crops is also necessary.

     Without land-use planning, plantations governments are counting on to provide agricultural export revenue are in constant competition and conflict with local farmers. Moreover, plantation owners need government help to provide the housing and sanitation facilities, schools, and clinics that are a constant source of complaints by the laborers they employ.

     Countries have tried to coordinate local production and crop exports by providing villagers with fertilizer, seeds, technical assistance, and credit. In exchange, under contract state-owned enterprises buy, at fixed prices, what the farmers produce. As earlier posts for Nigeria, coffee, and cocoa reveal, this process has been financially unsuccessful to both governments and small growers. Modifications have led governments to provide farmers with vouchers they can use to buy their own supplies, and private companies or coops have taken over the task of buying commodities from farmers.

     Chemical companies in a position to perform research for the precision farming that provides seeds, fertilizer, herbicides, and pesticides adapted to local soil and climate conditions in global areas of extreme poverty now concentrate their efforts on profitable corn, soybean, and cotton crops important to American agriculture, not, for example, cassava, which feeds the poor in sub-Saharan Africa.

     Instead of engineering crops to provide added vitamins and minerals to first world consumers, in areas of extreme poverty the same objective could be achieved by introducing small farmers to new crops they could plant and bring to their local markets. Not only would a greater variety of produce improve nutrition, but crop rotation could improve soils and increase a farmer's income. Farmers might save money by controlling weeds with mulch rather than chemicals, and they may even be able to make additional money by using weeds to weave baskets (see baskets for sale at serrv.org) or make bio-fuel.

(Farming topics also are covered in the earlier posts, "World (Food) Expo, Hybrid Crops & New Farming Practices" and "Back to the Land.")