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‘Green’ Palm Oil Goes Into The Red

After it became popular knowledge that Palm Oil production was linked to massive deforestation, people were calling for the companies to find greener ways to produce the Palm Oil – and prove it.  Therefore the Malaysian companies hired auditors to certify that they were not felling protected rainforest, and keeping their supply chain clean. However, it seems all-important European consumers have forgone the extra cost this has accumulated in associated products in favour of not-so-“green” cheaper price tags. The recession has been blamed for this, however the Palm Oil companies feel they have been persuaded to spend what seems to them to be unnecessary money by their western market, only to hit a brick wall when trying to sell to the very same consumers! The Chief Executive of the Malaysian Palm Oil Council said “We have been led down the path of false hope in selling environmentally-certified palm oil and now the buyers are not keen on paying for the premium”. This could be a massive dent in the global fight to wipe out illegal deforestation by Palm Oil companies, as if they have no financial incentive to change their ways, there may be no persuading them from now on.

Read more: Consumers shun ‘green’ palm oil

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