Production of oil palm occurs in some of the most biologically diverse ecosystems on the planet. Given the rapid expansion of oil palm production key drivers of the sector are working to meet the increased demand through certified sustainable production practices.

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Oil palm is the most cultivated fruit crop in the world and a key raw material for both food and non-food industries. As a testament to its contribution to the economic growth of producers in developing countries exports of palm were valued at over $US10 billion in 2005. Although palm oil production started decades ago in West Africa, over 85 percent of global production is concentrated in Malaysia and Indonesia with next largest exporters being Papua New Guinea, Columbia, and Costa Rica.

The sector is expanding at a rapid pace, especially with the increased demand for bio-fuel production. This demand originates in the desire to reduce greenhouse gas emissions and climate change, making sustainable production of bio-fuel all the more important. This rapid expansion raises significant challenges for stakeholders across the oil palm supply chain. Even though oil palm is free of genetic modification and has the highest yield per hectare of any oil seed crop, both cultivation and processing have the potential for significant social and environmental impacts. Across oil palm production zones new production is often linked to the clearing of vast tracks of natural forest. These conversions lead to reduced biodiversity, vulnerability to fire, displacement of local communities, and increased extraction of timber due to road construction. Additionally, oil palm cultivation involves a significant amount of fertilizer and herbicide inputs that can often lead to water pollution and irreversible damage to soils. 

These concerns are being addressed in several ways. The Roundtable on Sustainable Palm Production, a multi-stakeholder initiative for sustainable oil palm production, will launch a third-party certification scheme in early 2008. The scheme will address not only the ecological and social aspects of oil palm production but also the overall management systems of certified producers including worker health and safety, financial and economic viability, and continual improvement of operations. Additionally, the significant impacts of oil palm on global biodiversity has brought many conservation oriented NGOs and government agencies together to promote the adoption of best management practices and certification systems to promote economic growth and biodiversity conservation. 

Oil Palm topic editor: Matthew Edwardsen