“Shifting Perspectives: The Rise of Sustainable Palm Oil Production Amidst Consumer Awareness”
Consumers are increasingly aware of the environmental and social issues associated with palm oil production, such as deforestation, wildlife habitat destruction, and child labor. However, a rise in the number of small, sustainably certified producers could help shift this perception. The growing presence of smallholders coincides with the RSPO’s annual conference in Thailand, where CEO Datuk Darrel Webber announced that they would discuss the adoption of an independent smallholder standard. He expressed confidence that these numbers would continue to grow in the coming years. The RSPO defines smallholders as farmers cultivating palm oil on less than 123 acres alongside other subsistence crops. Although these areas are small compared to large commercial plantations, they account for over 3 million smallholders, representing about 40% of global palm oil production.
Major manufacturers like Mars, Nestlé, and Hershey have committed to reducing their palm oil usage, although they have faced criticism for not fully meeting these commitments. There are, however, success stories such as Mondelez’s Enjoy Life Foods, which last year became the first food company to receive Certification as Palm Oil Free from the International Palm Oil Free Certification Accreditation Program. According to Eco-Business, products like Quaker Oat biscuits from PepsiCo, Nissin’s Cup Noodle, Meiji’s Plain Crackers, Mondelez’s Oreo cookies, and Ferrero’s Nutella are all RSPO-certified.
More large companies could collaborate with the increasing number of RSPO-certified palm oil producers. The RSPO has established a dedicated platform to connect these producers with potential project partners, providing additional resources and support to help them achieve sustainable living. Certification can also help smallholders improve yields, access international markets, and mitigate the risks of land conversion, as noted by the RSPO. Large food companies could not only enhance their environmental credentials by partnering with RSPO-certified palm oil producers but also benefit from the positive reputation associated with supporting smaller farmers.
The environment can gain when smallholders are RSPO-certified and implement best management practices to limit or eliminate harmful pesticides and chemicals. The group encourages individuals in palm oil farming regions to learn how to protect natural resources and acquire the necessary tools, as highlighted by Food Ingredients First. Approximately 85% of global palm oil is produced and exported from Malaysia, Indonesia, and Papua New Guinea.
While sustainability is a core focus for the RSPO, the demand side is equally important. Palm oil remains relatively inexpensive, and manufacturers continue to use it in various baked goods and consumer packaged goods. The benefits of palm oil include its long shelf life, stability at high temperatures, and ability to solidify at room temperature, making it a popular alternative to partially hydrogenated oils. Nonetheless, more products are beginning to feature palm oil-free claims, with bakery launches topping the list in 2017, where 55% of new products indicated they were palm oil-free, followed by 7% in spreads, 5% in cereals, 4% in ready-to-eat meals, and 3% in baby and toddler food.
The RSPO aims to transition manufacturers and retailers to use only 100% certified sustainable palm oil, but this goal seems distant unless consumers demand it and make purchasing decisions that reflect their preferences. The situation is further complicated by consumers’ reluctance to pay a premium for sustainable palm oil when available. Thus, while more growers are achieving certification and prioritizing sustainability, challenges remain ahead.
Additionally, the health benefits of products such as calcium citrate malate vitamin D3 and isoflavone tablets illustrate a growing consumer interest in wellness. This trend, along with the push for sustainable palm oil, indicates a potential shift in consumer priorities that could impact the future of palm oil production. As awareness of sustainable practices in agriculture increases, it may lead to more significant changes in both consumer behavior and industry standards.
