Action Briefing Aug 2005 - Sept 2005
	The Newsletter of Birmingham Friends of the Earth

Greasy Palms

Friends of the Earth is co-ordinating a national day of action on Saturday 29th October 2005 to expose one of the most significant causes of rainforest destruction in South East Asia: the palm oil industry.

Palm oil is an incredibly versatile vegetable oil derived from the fruit of the oil palm tree Elais guineensis. In central Africa, where the oil palm originated, it is a staple crop central to the livelihoods of millions of small-scale farmers. But elsewhere in the world palm oil is big business. Commercial oil palm plantations have spread throughout the tropics.

The spread of oil palm plantations is a major driver of tropical forest destruction in some of the world's most biologically diverse areas. The plantations decimate the local wildlife, wiping out 80-100 per cent of birds, reptiles and mammals, and putting extra pressure on already threatened species like the Orang-utan and Sumatran tiger. In Indonesia, where tropical rainforest is disappearing at a rate of over 2 million hectares a year, mature oil palm acreage increased by 118 per cent from 1995-2003. According to the industry, 48 per cent of Indonesian and Malaysian palm oil plantations are created on primary (largely undisturbed by humans) or secondary forest land, and field observations in these countries suggest the figure could be much higher. The use of fire to clear the land was a major cause of the forest fires that ravaged Indonesia and cast an almighty smog over the entire region in 1997. Malaysia was again shrouded with thick haze from Indonesian forest fires this year, largely caused by Malaysian owned plantations in Indonesia using fire to clear brush and rainforest remnants for oil palm plantations.

Many areas of rainforest are protected, but the laws are weak and easily buckle under the demands of oil palm companies for more land. In Indonesia, where thousands of local communities and indigenous peoples have displaced from their traditional lands to make way for plantations, the oil palm business is a byword for corruption, bribery, human rights violations and violent conflict.

Ubiscuitous
Phew! Bet you're glad you've never bought palm oil, eh? Think again. Palm oil crops up (groan!) in at least one in ten supermarket products marketed in Europe and one in three food products on supermarket shelves in the UK. It is an ingredient in biscuits, chocolate, frying oil, instant noodles, muesli, ice cream, crisps, chips, sauces, mayonnaise and margarine, to name but a few, and its derivatives are used in soaps, shampoo, cosmetics and detergents, as well as in the metal and leather industries.

To complicate matters, palm oil is notoriously difficult to trace. A survey by FoE found that just 17 per cent of UK companies involved in the palm oil trade knew the origin of the palm oil they were using. The chain of production and supply for palm oil is a complex one, involving plantation owners, traders, refiners, processors and retailers of the oil. The hundreds of oil palm plantation companies in Indonesia are controlled by a handful of Indonesian and foreign-owned business companies, of which the UK Government-owned company CDC (formerly the Commonwealth Development Corporation) is one. Although some palm oil entering the UK is imported by major players such as the Anglo-Dutch company Unilever, much of it is bulk-imported by small independent traders and brokers. The oil is then sold on to be processed into the many different products on supermarket shelves.

The Slave Tree
Palm oil now accounts for 21 per cent of the global edible oil market, making it the second most consumed edible oil in the world after soy oil. Plantation companies want to expand production into other countries such as Papua New Guinea, where the pattern of deforestation and conversion to plantations already seen in Malaysia and Indonesia looks set to spread. The Papuans call the oil palm the 'slave tree', which says it all, really.

The complexity of the palm oil issue and the vast range of uses for the product means that a consumer boycott of palm oil is virtually impossible and potentially irresponsible, as it would simply force producers to convert to other, equally damaging vegetable oils.

Corporate responsibility legislation, on the other hand, could make a real difference here. Mandatory reporting would ensure that supermarkets and processed food companies report fully on their links with the sector. A legal obligation on company directors to take reasonable steps to reduce significant negative social and environmental impacts would spur companies on to find out where their palm oil comes from and examine the impacts. They would also be encouraged to participate in (and take seriously) relevant sector initiatives such as the Round Table for Sustainable Palm Oil.

With such legislation in place, 'UKplc' could set a standard for other countries to follow, but for now the Government allows the palm oil trade to continue unregulated. We're hoping to help change that on 29th October. FoE's target for the day of action is to get 5,000 supermarket customers to sign a postcard to their MP calling for duties on company directors that would prevent UK companies damaging the environment overseas. If you want to get involved in the Birmingham action then call me on 0121 632 6909 or e-mail info@birminghamfoe.org.uk.

This article is based on FoE's 2004 report Greasy Palms: Palm Oil, the Environment and Big Business.

James Botham