MEMO Palm oil Challenging the myths

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Gregory Butler
6 years ago
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1 MEMO Palm oil Challenging the myths Myth # 1: Primary forest is cleared to grow oil palms, thus threatening biodiversity. Deforestation is carried out not in order to plant oil palms but in order to sell wood. Out of the 21 million hectares of primary forest which disappeared in Indonesia between 1990 and 2005, only 3 million was felled in order to create oil palm plantations (Persey, 2010). What about the remaining 18 million? The wood was used to produce timber, pulp for paper-making, and charcoal. If these deforested areas are not replanted, they are left fallow until they become degraded savannahs which may or may not then be converted to agricultural use. If a primary forest is converted into a plantation, biodiversity loss is 85%, but this is true of any intensive monoculture, in the tropics as elsewhere. According to R.H.V. Corley (2009), if all the degraded lands identified to date in Indonesia alone were put to agricultural use, the fat needs of the entire world population could be met until Hence the cutting down of primary forest in order to meet growing needs for vegetable oil is not inevitable. In addition, palm oil has the special characteristic of very high productivity compared with its substitutes, which paradoxically makes it economical in terms of land use. The yield per hectare for palm oil is around 4 tonnes, whereas that for soybean is 0.4 and that for rapeseed 0.8 tonnes. In other words, for an equivalent surface area, oil palms produce about 10 times more fat than soybean and 5 times more than rapeseed. In 2011, the total area used globally for agriculture was 1.5 billion hectares. Oil palm plantations occupied less than 1% of this area whilst providing more than 30% of the world s output of vegetable oil. The world s population is increasing by 220,000 people every day, or 80 million people every year! In 2050, the number of individuals to be fed will be 9.3 billion! If trends in fat consumption continue, at least 25 kg of oil will be consumed per person per year. To meet such a demand, it is estimated that an additional 150 million tonnes of vegetable oil will need to be produced, which is nearly 4 million tonnes more every year (Bek-Nielsen, 2012)! To achieve these production levels, we would need: => an extra 333 million hectares of soybeans at 0.45 Mt/ha (with significant risk of deforestation in Amazonia) or => an extra 190 million hectares of rapeseed at 0.8 Mt/ha or => 37 million hectares of oil palms at 4 Mt/ha (the area currently used) GLOBAL PRODUCTION (2012) OF THE MAIN VEGETABLE OILS Oil Production (Mn T) 1. Palm 52 36% 2. Soybean 41 28% 3. Rapeseed 24 16% 4.Sunflower 15 10% 5. Palmkernel 6 4% 6. Cotton 5 3% 7. Groundnut 4 3% 8. Coconut 3 2% Total 150 AVERAGE OIL YIELD (/HECTARE/YEAR Oil Average Yield 1. Palm 4.0 Mt/ha/yr 2. Rapeseed 0.8 Mt/ha/yr 3.Sunflower 0.6 Mt/ha/yr 4. Coconut 0.5 Mt/ha/yr 5. Soybean 0.4 Mt/ha/yr 6. Cotton 0.4 Mt/ha/yr 7. Groundnut 0.3 Mt/ha/yr 8. Palmkernel 0.3 Mt/ha/yr Myth # 2: Palm oil contains saturated fatty acids, and is therefore bad for the health Palm oil contains around 50% saturated fatty acids. By way of comparison, coconut oil contains 85%, cocoa butter contains 60%, soybean oil and olive oil 15%, sunflower oil 11% and rapeseed oil 7%. These fatty acids are believed to be the cause of cardiovascular disease, although various studies carried out in humans are contradictory. Specialists in nutritional biochemistry agree that all fatty acids have a useful biological function, and it is the amount consumed that causes problems. There are no good or bad oils, and consumers must try, where possible, to vary the types of vegetable oil in their diet. In addition, the relationship between fatty acids and obesity and between fatty acids and cardiovascular disease are complex, and the published results are often contradictory and very difficult to transfer from one animal species to another. Palm oil commercial literature Sogescol FR - TDE Page 1

2 According to the French Fund for Food and Health (FFAS), the average consumption of palm oil in a country like France is low: around 5.5 g per person per day, corresponding to 10% of the recommended intake of saturated fatty acids (for a diet of 2,000 kcal). There is therefore no overconsumption. Moreover, a point that is often omitted is that palm oil contains no trans fatty acids, which many studies have linked to a high risk of cardiovascular disease. Trans fatty acids increase blood levels of LDL ( bad cholesterol ) while lowering levels of HDL ( good cholesterol ). According to the results of a study published in 1997, trans fats may increase the risk of cardiovascular disease by 132% (compared to 32% for saturated fats). It is the transformation of liquid oil into solid oil by hydrogenation which leads to the creation of these trans fatty acids. Hydrogenated oils are obtained by mixing hydrogen with unsaturated vegetable oil (usually soybean, rapeseed or maize) to obtain an oil which keeps better, is more stable at high temperatures and is easier to transport. Palm oil, on the other hand, is naturally hydrogenated, which is what gives it its solid consistency in our temperate climes. Palm oil which solidifies at room temperature therefore has the natural advantage of not containing trans fatty acids. Note that cocoa butter is also naturally hydrogenated, and nobody claims that it is bad for your health to consume it! According to A. Rival (Cirad), the main drawback of palm oil is its rather monolithic nature, since it mainly contributes a single saturated fatty acid: palmitic acid. Palmitic acid is the most elaborate form of energy storage, which has given a considerable evolutionary advantage to many species, but it is also a crossroads molecule which will accumulate if the individual s diet is unbalanced, including in sugars. Note however that palmitic acid is one of the most commonly found saturated fatty acids in animals and plants. As its name suggests, is found in palm oil, but also in all animal and vegetable fats and oils (butter, cheese, milk and meat). It is also the fat found in human breast milk. In a country like France, 1 to 2 kg of palm oil is currently consumed per person per year - compared with 50 kg of saturated fats consumed in dairy products and meats. Finally, it should be borne in mind that crude palm oil (CPO) is the richest known product in terms of carotenes (precursors of vitamin A) and in tocopherols, an antioxidant, which accounts for its valued use in Africa as a natural source of Vitamin A. Illustration: Nutella is an advocate of palm oil, as it gives its product smoothness and consistency and contains less saturated fat than many other products used for the same purpose: Myth # 3: The oil palm is a 100% industrial crop which benefits Western multinationals. 60% of palm oil is produced by small farmers owning less than 40 ha. Small farmers either consume their own oil, sell it on the local market or sell their fruit to factory owners. In Indonesia, 1,000 to 3,000 dollars per hectare per year is generated by oil palm cultivation, and according to McCarthy (2010) this income has contributed significantly to the decline in poverty and the emergence of a rural middle class. Today, more than 5 million people in Indonesia depend directly on oil palm cultivation. Palm oil commercial literature Sogescol FR - TDE Page 2

3 In absolute terms a total boycott of palm oil would ruin the livelihoods of more than 100 million people. Boycott/substitution campaigns could have catastrophic effects on this sector, contrary to the anticipated effects of such ethical behaviour. Myth # 4: Oil palm cultivation causes pollution. In order for the best seeds to reach their full potential, fertiliser use is essential. There is therefore a genuine risk of pollution, particularly of groundwater, when fertiliser is used excessively and/or at the wrong time. However, this is a problem common to all intensive monocultures across the world. Numerous agricultural laboratories are working with farmers to achieve rational fertilisation of palm plantations. The idea is to optimise fertiliser use to bring maximum benefit to the plant through intermittent and carefully calculated applications, thus preventing residues from entering groundwater or surface water. This rational management is not a new concept, but has been gaining momentum in recent years with the realisation that high yields must go hand-in-hand with environmental protection. According to A. Rival (Cirad) the situation is very different with regard to pesticides, since to date the oil palm has no parasites or pests for which there is not a biological solution. Fusarium Wilt in Africa has been eradicated using resistant seeds from conventional breeding programmes. Research along similar lines is being conducted on attacks of Ganoderma in South-East Asia. Experiments are also underway to identify the causative agents of Bud Rot in Latin America, in parallel with the use of the genetic resources provided by the Amazonian species Elaeis oleifera. Thus there are three continents with three diseases which currently remain confined to their place of origin. Furthermore, palm oil is extracted from the fruit by means of pressing, without the addition of chemical additives, in the same way as for olive oil. Myth # 5: Palm oil is used to make biofuels. Global production of biofuels amounted to 60 million tonnes in 2011: - 39 million tonnes (2/3 of the total) of ethanol made from sugar, starch or cellulose from corn, soybeans, sugar cane, sugar beet, etc million tonnes (1/3 of the total) of biodiesel made from oils (rapeseed, corn, soybean, palm, etc.) and fats. Today, approximately 8% of global production of palm oil (~ 4 MnT) is used as biodiesel. There is therefore no direct competition between the use of palm oil for energy and for food. However, biofuels have created long-term pressure on vegetable oil prices. In Europe (EU27), biofuels account for around 23% of the 6 million tonnes of palm oil imported annually. In addition, vegetable oil prices depend on petroleum prices more than on climatic factors, despite the complete interchangeability of vegetable oils: this trend has been growing in recent years. However, palm oil is not the main vegetable oil used in the manufacture of biodiesel. Worldwide, the main oils used for manufacturing biodiesel are rapeseed oil (27%) and soybean oil (17%). Palm oil is used in 10% of cases. Palm oil commercial literature Sogescol FR - TDE Page 3

4 Myth # 6: Substitutes can easily be found for palm oil Yes, but with economic consequences... Palm oil remains the most accessible and cheapest oil. This is mainly due to the fact that it is produced in places where it has the best chance of growing easily, namely the countries of South-East Asia, South America and Africa, which are also those with the lowest production costs for edible oil crops. This makes it an accessible food providing a significant calorie input in developing countries while also enabling citizens of developed countries to afford consumer goods at a time when their purchasing power is reduced Palm oil, cif Rotterdam Coconut oil, cif Rotterdam Palmkernel oil, cif Rotterdam Soybean oil, fob Argentina Groundnut oil, cif Rotterdam Source : Oil World (USD/Mt) Yes, but with industrial and health consequences Food manufacturers favour the use of palm oil in their products because it has many advantages. It is solid at room temperature, and consequently gives crunchiness to foods such as biscuits, but also has a creamy texture, which means that it gives food a feeling of richness. It can be used to replace butter or cream and can be incorporated directly into recipes. The taste is neutral and does not alter the taste of food. It stores easily (it is the oil which is the riches in anti-oxidants, and does not need preservatives) and does not go rancid, unlike other oils. It is the most satisfactory option for frying because it does not degrade when heated. Other oils generally need to undergo a hydrogenation process. As well as their changed melting characteristics, hydrogenated fats have better oxidation resistance, which in particular allows rancidity to be controlled. However: - Partial hydrogenation of oil creates trans fatty acids. - Total hydrogenation of oil creates a very hard solid which cannot be compared with palm oil with its 50% unsaturated fats. In addition, alternative unsaturated oils are much less thermally stable than palm oil. We can therefore expect to see more new chemical species. Yes, but with social consequences... Oil palm cultivation s role in the fight against poverty is recognised, and it is now regarded as a tool for rural development. Given the sector s relative lack of seasonality, jobs and other benefits remain stable throughout the year. Today, one hectare of oil palm plantation yields its Indonesian owner between USD 1,000 and 3,000 per year (depending on the exchange rate) - the difference between destitution and poverty... Oil palm plantations can provide the means of subsistence for 50 to 100 families per km2. Palm oil commercial literature Sogescol FR - TDE Page 4

5 APPENDIXES Appendix 1: Oil palm statistics (Sources: Oil World, U.S. Department of Agriculture) Appendix 2: The oil palm and its derivative products: multiple applications Palm oil commercial literature Sogescol FR - TDE Page 5

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