Sustainable Palm Oil The UK Perspective
imported to the UK. These palm oil imports are more difficult to identify and to trace back to the original source.
Is the UKs palm oil consumption significant?
The evidence shows that the UK is not really a major global player in terms of palm oil and palm kernel oil consumption. UK imports in 2009 were equivalent to approximately 1.2% of global palm oil and palm kernel oil produc- tion. And the quantities of palm oil imported to the UK have decreased by 40% over the past five years.
So, if the UK is going to be influential in the global market for palm oil and palm kernel oil, it will need to work together with, and influ- ence, other consumer nations. One avenue of influence will be through the European Union, which is the second-largest consumer of palm oil worldwide.
The world’s largest consumer of palm oil is China, and Defra has jointly funded a project with the Chinese Chamber of Commerce to create the business rationale for sustainable sourcing of palm oil in China, and explore how the Chinese Ministry of Commerce might encourage this.
However, the UK is a more significant player if we look not at palm oils, but at consumption of palm kernel meal. Perhaps surprisingly, the study shows that in 2009 the UK imported approximately 10% of the global output of palm kernel meal. This meal is sometimes seen as a by-product of oil pro- duction, and perhaps therefore might be a less powerful lever for influencing change than the oil itself, but it’s an area worthy of further investigation.
What do we use palm oil for?
Sixty-eight per cent of the total UK import of palm oil and palm kernel oil is used for food. The main use is in biscuits which are esti- mated to use over 20% of the total import of palm oil. Other palm oil containing foods are margarine, frying fats, crisps and nuts, instant noodles, confectionery and ice cream. Animal feed is also a very significant use for palm oil and meal. An estimated 23% of the imported palm oil and palm kernel oil, plus over 80% of the imported palm kernel meal, is used for animal feed. This includes feed for livestock and fish (which are then used for human food) as well as use in pet food. The third biggest UK use of palm oil is in biofuels. Palm oil is used to produce Palm Methyl Ester. This is then blended with methyl esters from other oils (e.g. soy, tallow, rapeseed) into Fatty Acid Methyl Ester, which is used as a biofuel for transport.
Finally, palm oil is used to make surfactants which are used a wide range of personal care and cleaning products including soap, sham-
UK imports in 2009 were equivalent to 1.2% of global palm oil and palm kernel production
poo, body wash, laundry and dishwashing detergents, toilet cleaners and air freshners.
How sustainable are UK palm oil supplies? The report estimates that around 24% of UK palm oil and palm kernel imports in 2009 were from certified sustainable sources. This has two components. Firstly, the UK has imported 55,000 metric tons of sustainable palm oil, cer- tified by the Roundtable on Sustainable Palm Oil. Secondly UK companies have purchased around 100,000 metric tonnes of Green Palm certificates. The Green Palm scheme involves certificate trading between buyers and seller,
The UK appears to be on the right track. Many major grocery manufacturers are moving to 100 % sustainable sourcing
and is also run through the Roundtable on Sustainable Palm Oil.
This move towards sustainable sourcing has taken place as a result of voluntary action by manufacturers and retailers supplying the UK market, in response to NGO campaigning and/ or consumer demand. It has also been driven by sustainability criteria in EU Renewable Energy Directive, the UK Government’s Renewable Fuel Obligation and the Renewables Obligation Certificate subsidy scheme for renewable elec- tricity producers. A number of companies operating in the
UK have made commitments to source all of their palm oil sustainably by 2015. If these 2015 targets are met it is expected that around
8 | Sustainable Business | Sustainable Palm Oil | June 2011
244,000 metric tons of the UK import of palm oil would be sustainable, which is equivalent to 37% of the total import.
How reliable are these figures? These figures are derived from publicly avail- able data and information, including trade statistics and reports, plus further informa- tion from systematic interviews with a range of companies and others involved in the UK palm oil supply chain, as well as from a stakeholder workshop and online question- naire. The official trade data is robust, but the additional information, such as the volume of palm oil used by individual sectors, has been estimated. The figures are likely to be of the right magnitude but are not exact. The full reports are available at:
www.defra.
gov.uk/environment/natural/deforestation
What next for UK palm oil consumption? The UK is appears to be on the right track, but there is fair way still to go. Many major grocery manufacturers and retailers are lead- ing the way in moving to 100% sustainable sourcing. Others, including many in the ani- mal feed industry, hospitality industry, and small and medium sized businesses have yet to address the issue. They may face a range of barriers including lack of awareness, sup- ply chain complexity (especially for palm oil derivatives) and additional costs.
But these problems can be overcome. If governments, businesses, NGOs and consum- ers work together, we can look to a future in which the UK as a whole can say proudly that all of our palm oil is from sustainable sources.
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