10 Facts about Oil Palm
We know it contributes to deforestation and kill orangutans, but we need it… Here are 10 facts about oil palm.
1) Oil palm causes deforestation in the tropics
Oil palm strives in the tropics so human beings grow it there. Unfortunately, the tropics are also a biodiversity hotspot with tropical forests and precious wildlife. Farmers and large private companies cut the forest down, destroying habitats rich in biodiversity, to plant oil palm and make profit. There is no other place to cultivate oil palm because it can only grow in the tropics, especially in Indonesia and Malaysia. It is estimated that more than half of Indonesian deforestation over the last decade was due to oil palm establishment.
2) Oil palm plantations threaten biodiversity
Oil palm is often planted in a land covered by tropical forests and rich in biodiversity. Tropical forests host many plants and animals, but when oil palm is established, all trees are cut down and animals run away. Oil palm plantations are not as diverse as a primary forest. They have only one kind of tree, all of the same age and height. For this reason, oil palm plantations do not provide as much habitat and resources for wildlife. Few species thrive in oil palm plantations. These are usually generalists able to live off various resources like wild pigs and rats. Rare and specialist species fly away from the area or find refuge in patches of abandoned land. On the long term, the species which have lost their habitat are condemned to disappear.
3) Oil palm makes ecosystems vulnerable to climate change
Oil palm plantations severely disturb the environment where they are established. From a structurally and biologically diverse forest, the habitat is changed into a monoculture with only oil palms on large areas. The ecosystem completely loses its functions and become vulnerable to weather variation. For example, in Indonesia where peatlands are drained to establish oil palm, floods and fires are more likely to occur. Peatlands are buffer regulating the flow of water falling during rainy days. They act like a sponge, storing the water and slowly releasing it during the dry season. Once peatlands are drained and thereby destroyed, this sponge effect is lost, water flood the area during the rainy season and drought creates fire during the dry season. With a changing climate, such disturbed ecosystems which have lost their biodiversity and regulatory systems are more vulnerable to weather variations.
4) Oil palm stores more carbon than alternative crops
Oil palm is not a tree, but it stores carbon almost like a tree. It is better than herbs or grasses to store carbon, but it’s not as good as a perennial tree like rubber. Anyway, the trunk of oil palms still stores a significant amount of carbon, about half the amount of a primary forest. On a bare and degraded land, it is a great initiative to plant oil palm and therefore increase the amount of carbon stored in the area. However, many oil palm plantations occur at the expense of the forests and peatlands which causes carbon emissions and decreases the amount of carbon stored in the vegetation and soil.
5) Oil palm contributes to rural development
Oil palm is cultivated in the countryside of tropical countries which are often poor. Rural populations use oil palm as an opportunity to earn more money and make profit with a land often economically idle. People who were practicing a subsistence agriculture can now earn enough money to buy modern tools and send their children to university.
6) Oil palm creates social conflicts
Oil palm is grown in countries where a high portion of the population is unable to read or do not understand the national language but speak a local dialect. These ethnic minorities are often taken advantage of and lose their land in blurry contracts. In other cases, poor farmers sell their land for a cheap price happy to get rid of it for some money, but they later realize that they sold it under the market price. Obviously, they are pissed off and conflicts arise.
7) Oil palm is one of the most profitable land-use in the tropics
The expected increase in oil palm consumption makes it a very good investment. Oil palm is also a very productive plant. When natural conditions and management are optimal, oil palm can produce up to 10 tons per hectare. In Indonesia, the government subsidizes fertilizers and pesticides and promotes oil palm plantations having a high productivity. Palm oil can be sold for 500$ per metric ton, therefore oil palm companies significantly contribute to Indonesia and Malaysia’ incomes and economic growth. Many rich businessmen in these countries built their empire on oil palm. Yes, oil palm generates a lot of cash.
8) Oil palm is better than other vegetable oils
Oil palm is a highly productive plant. In optimum conditions, for example in Indonesia and Malaysia, on average one hectare of oil palm produces 4.5 tons of oil. This is huge compare to other common vegetable oils like rapeseed and soy which produce only 2 tons of oil per hectare. In fact, for a same area, oil palm is the most productive vegetable oil. This high productivity is an opportunity to set apart and preserve some areas for biodiversity.
9) Oil palm is widely used in various products
Oil palm is used in a wide range of products spanning from public transport fuel, frozen pizzas and face care creams. We need oil palm and we need a lot of it because it is present in the most commonly used products like cosmetics, food, and fuel. Usually, it composes a small portion of the final product and this complicates the industry’s intent to create a sustainability certification. Why businesses and customers would care about oil palm sustainability when it composes only 5 or 10% of the final product?
10) Oil palm demand will increase in the future
Each day, there are more and more people on Earth. However, this is not the worse. The number of people is not the problem, but the true challenge is the way people consume goods. People consume more because they earn more money and can afford a higher quality of life. Moreover, people work more and have less time to cook. And if they do not cook, they buy ready-to-eat food like frozen soups or pizzas. As people get a higher quality of life, they use more make-up to look beautiful, and they use more fuel for transportation. Oil palm is present in a lot of products spanning from face creams, frozen pizzas, and fuels powering public transports. As the world economy is booming, oil palm consumption is expected to increase… a lot.
Take home messages
Oil palm is a widely used commodity that manufacturers need to produce most of the items we use daily. However, in the tropics where it is produced, oil palm contributes to deforestation, loss of biodiversity and disturb the environment. On the one hand, oil palm participates in increasing the wealth of tropical countries, but on the other, this wealth is not well-shared and can create conflicts over land property.
Demand for oil palm is expected to increase and therefore will likely cause more deforestation and biodiversity loss. Moreover, oil palm sustainability certifications are not completely respecting their promises to halt deforestation. Consumers can’t really boycott oil palm because millions of people in tropical countries rely on it to make a living, and there are no good alternatives among current vegetable oils.
What to do? My naïve advice would be to reduce our overall consumption and cook instead of buying ready-to-eat food and cosmetics.