Palm oil is a multiplayer, functioning as an ingredient in our everyday food, as an essential ingredient in our cosmetic products and as an energy supplier. We use it on a daily basis, while brushing our teeth with the “Colgate” toothpaste after we ate “Nutella” on toast. After we filled our diesel car with palm oil biodiesel, we probably wash our hands with a “Dr. Bronner’s Magic Soap”. In all these products, palm oil is the fundamental ingredient. But where does it come from and how can we identify the problems that occur within the palm oil production?
The edible oil seems to be promising, but in fact causes deforestation, carbon dioxide emissions and the loss of biodiversity. The industries, as well as the end consumers are not aware or do not want to be aware of the fact, that the climate is changing and one essential reason for that is the irresponsible production of palm oil.
With the help of organizations like “Greenpeace” and “Amnesty International”, it is possible to find out what consequences palm oil production already has. According to Greenpeace UK “An area the size of a football pitch is torn down in Indonesia’s rainforest every 25 seconds, with palm oil driving the destruction.” (Nicholls). This leads to my research question: Is it possible to produce sustainable palm oil?
In order to answer my research question, I want to connect its history, as well as the biological process onto the consequences palm oil production already has. Within my essay I will focus on the business and usage of palm oil, showing its unique variety. With the help of examples of different companies, which use palm oil as an ingredient for their products, one has the possibility to form his own opinion on the aspects of sustainability within the palm oil sector.
My goal is to raise awareness of the use of palm oil products and to eliminate preconceptions according the palm oil industry in general.
Table of Contents
1. Introduction
2. Historical Background
2.1. Africa
2.2. Asia
3. Process
4. Business
4.1. Supply (Value) Chain
4.2. Companies
4.3. Smallholders
4.3.1. Insetting
4.4. Certifications
5. Usage
5.1. Cosmetics
5.1.1. Dr. Bronner’s and L’Oréal
5.2. Food
5.2.1. Ferrero and Mars Inc.
5.3. Energy
6. Risks
6.1. Health Risks
7. Consequences
7.1. Rainforest Destruction
7.2. Human Rights Challenges
8. Conclusion
9. Works Cited
Objectives and Research Themes
This paper examines the global palm oil industry to determine the feasibility of sustainable production. By analyzing historical origins, current business models, and environmental and human consequences, the study seeks to address whether sustainable palm oil is a viable reality or largely a marketing construct.
- Historical evolution of the global palm oil trade
- Business dynamics and the supply chain structure
- Environmental impacts including deforestation and biodiversity loss
- Social consequences and human rights violations in plantations
- Critical analysis of current sustainability certifications and initiatives
Excerpt from the Book
4.2. Companies
From the “Royal Niger Company” that existed from 1879 until 1900 to “Cargill”, one of the largest companies selling palm oil, not much has changed. Its market share of palm oil trade is estimated to include 25 percent of the produced palm oil worldwide. “Cargill” sells palm oil, which source can be traced back to Sumatra, where the last orangutans live (Motlagh). Therefore, the multinational concern participates in one of the largest deforestation cases of one of the most important rainforests on the planet.
Alongside the endangerment of the orangutans, other species like seldom tigers, elephants and rhinos are exposed to wildfires which threaten their lives (Motlagh). Various petitions tried to stop this dilemma, but frequently failed because of the lack of evidence due to the adherence to the required regulations. What most of the end consumers do not know is, that “Cargill” also imports palm oil to Germany, where it gets processed into margarine or candles, which we can purchase in our local supermarkets (Motlagh).
Another company, called Wilmar International, the “world’s biggest palm oil trader”, is confronted by “Amnesty International” accusing them of human rights violation (amnesty.org). “Amnesty International investigated the Indonesian palm oil plantations that supply (…), Wilmar, and found forced labour, low pay, exposure to toxic chemicals and discrimination against women - employed as casual workers, without pensions and medical insurance.”. Wilmar responded by letting its workers “sign a document which stated that the abuses outlines in Amnesty International’s report were not taking place on their plantations.” (amnesty.org). As the workers live in constant fear of losing their jobs or being relocated, separated from their families, most of them seemingly consented to sign. Neither of these companies seem to be fully committed to an industrial change, that has been needed since a long time.
Summary of Chapters
1. Introduction: Introduces the ubiquity of palm oil in daily products and states the core research question regarding the possibility of sustainable production.
2. Historical Background: Traces the origins of the palm oil trade from ancient Egypt to the industrial era and the expansion into Southeast Asia.
3. Process: Describes the technical workflow of harvesting, milling, and refining palm oil into its various forms.
4. Business: Analyzes the market dominance of Indonesia and Malaysia and examines the complex supply chain and corporate responsibilities.
5. Usage: Explores the primary sectors for palm oil consumption, including food production, cosmetics, and the controversial biofuel market.
6. Risks: Discusses the adverse health effects associated with the processing and consumption of palm oil, specifically concerning refined fats.
7. Consequences: Documents the environmental destruction of rainforests and the severe human rights challenges faced by plantation workers.
8. Conclusion: Synthesizes the findings, concluding that while some ethical models exist, current industrial-scale production remains inherently linked to environmental and social exploitation.
9. Works Cited: Lists the academic sources, institutional reports, and journalistic articles used throughout the research.
Keywords
Palm oil, Sustainability, Deforestation, Biodiversity, Supply chain, Human rights, Smallholders, Insetting, RSPO, Biofuels, Environmental impact, Corporate responsibility, Greenwashing, Industrial agriculture, Sustainable development.
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates the global palm oil industry to determine if sustainable production is genuinely possible or if current claims of sustainability are primarily greenwashing.
What are the central themes discussed in this work?
Key themes include the historical development of the trade, the economics of the supply chain, the environmental degradation caused by plantations, and the social issues regarding labor rights.
What is the primary research question?
The primary research question is: "Is it possible to produce sustainable palm oil?"
Which scientific and analytical methods are employed?
The author uses a qualitative research approach, synthesizing existing literature, corporate reports, and findings from NGOs like Greenpeace and Amnesty International to evaluate the palm oil sector.
What topics are covered in the main body of the paper?
The main body covers the history of production, the technical process of oil extraction, market dynamics, industry-specific usage (cosmetics, food, energy), and the negative impacts on health, wildlife, and human rights.
Which keywords best describe this study?
Important keywords include Palm oil, Sustainability, Deforestation, Supply chain, Human rights, and Corporate responsibility.
How do "smallholders" contribute to the palm oil industry's issues?
Smallholders often lack access to training and resources, leading to lower productivity and a reliance on unsustainable practices like land clearing through burning.
What does the author argue regarding sustainability certifications like RSPO?
The author argues that these certifications are often insufficient and may mislead consumers, failing to prevent the ongoing destruction of tropical rainforests.
Why is palm oil used in the biofuel industry, and why is this problematic?
Palm oil is used as a feedstock for biofuels, but the author highlights that its production for this purpose drives massive deforestation and high greenhouse gas emissions, potentially worse than fossil fuels.
What conclusion does the author reach about the future of palm oil?
The author concludes that sustainable production is limited and that consumers must actively minimize their consumption, as major industrial changes are currently failing to materialize.
- Quote paper
- Julia Franziska (Author), 2019, Is it possible to produce sustainable palm oil?, Munich, GRIN Verlag, https://www.grin.com/document/464281
