Thursday, September 9, 2010

Palm Oil - It's Not All About You

By Faizah Cole

All the big brands are making statements about palm oil at the moment. Whether they're announcing their plans to buy sustainable palm oil for their chocolate, bread or soap, or off-setting their use with certificates, they're all setting our their policies on palm oil.

That's because the palm oil industry in Malaysian and Indonesia is accused of destroying precious rain forest and the homes of endangered orang-utans, and of emitting high levels of greenhouse gases. That's why major businesses are responding to consumer demand from consumers that they stop supporting such practices.

Great! The brand looks good, customers can buy their biscuits without fear of killing orang-utans, and another box is ticked on the CSR statement. The problem is this - if European companies boycott palm oil altogether, or buy only from sustainable plantations in countries such as Papua New Guinea, the issues in Indonesia and Malaysia will simply continue.

Point one: Malaysia and Indonesia rely on the palm oil industry to provide a living for more than a million people. And the plantations are not all run by profit-driven corporations - between 40 and 45% are smallholdings producing oil that is never exported.

The second point is that if Europe stops buying palm oil from Malaysia and Indonesia, that shortfall will go unnoticed among the huge amount consumed by India, China and other major markets.

Thirdly, switching away from palm produced in Malaysia and Indonesia will remove producers' incentive to work sustainably. Why invest in certification, audits and changes in production methods if the market is not interested in paying for it?

Fourthly, the issue is not palm oil, but the way it is produced. Oil palms grow faster, have a far higher yield and require 10 times less land than any other crop. A cheap, high-yielding crop is crucial for feeding the world's growing population, so if we stopped all palm oil production, we'd see the same problems but on a greater scale as slower, less productive crops were grown to replace it.

Ultimately, sacrificing the odd biscuit, soap or ready-meal containing palm oil might make you feel like an eco-crusader, but it's not going to tackle the real issues. Palm oil is here to stay, so if you're really concerned, your time is better spent supporting their drive towards sustainable production.

It's easy to grab plaudits by boycotting palm oil or buying it from a country not associated with the problems. But don't forget that if you shun Malaysia and Indonesia, you turn your back on the orang-utan, the rain forests and the people whose lives depend on palm oil.

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