Indonesia
How is it produced?
Palm oil comes from the seeds and fruit of an oil palm tree. These trees usually grow in more tropical environments. Indonesia, alongside Malaysia, are two of the biggest palm oil producers globally. These two countries make up more than 85% of the global production of palm oil (Murphy, 2019)
Describe the supply chain to the store shelf in Canada:
Palm oil is a natural resource used for various products spanning multiple industries. Most popular, it is used in food, biofuels, cosmetics, soaps, shampoo, and many more. After it is produced, it is sent to mills and refineries where it is made into various products that get shipped to Canada and other international countries. Palm oil is connected to the globalization process by its prominence in international markets and how it is produced in tropical regions.
What is the power balance between the producer and seller?
There have been reports of long hours, little pay, and exposure to dangerous chemicals while working on plantations. Furthermore, there have been reports on forced labour and child labour in some operations (Pye, 2019). Companies like Nestle and Pepsi are infamous for neglecting labour rights issues within their supply chains even though their brands bank themselves on supporting sustainable practices (Rainforest Action Network, 2018).
Can you recommend changes to the system to improve the balance?
Something we could implement to help change these systems is boycotting companies that are using palm oil in their products. Try and support local brands that are using sustainable methods instead of purchasing foods, shampoos, facial products and more that support unsustainable practices. Palm oil is also high in saturated fats which is not healthy to consume in high quantities. These companies are putting ingredients into your body that not only will harm your health, but it contributes to global warming.
References/Resources:
Murphy D.J, “Oil palm in the 2020’s and beyond: Challanges and solutions,” CABI Agriculture and Bioscience.
Pye O., “Trends in global dependency on Indonesian palm oil,”Nature. 2021
Palm oil – deforestation for everyday products. (n.d.). Rainforest Rescue.
RAINFOREST ACTION NETWORK. (2018). Annual Report 2017-2018. https://www.ran.org/wp-content/uploads/2018/12/RAN_AR_2018_v9.5×8.5_vWEB.pdf