The World Has Loads of Sustainable Palm Oil... But No One Wants It
- Certified variety costs more and buyers won’t pay premium
- Only half of the sustainable output is actually being sold
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The world’s biggest growers of palm oil say they’re stepping up efforts to produce the contentious commodity more sustainably, but consumers are unwilling to pay more for environmentally friendly supply.
Production of sustainable palm oil has jumped to a record 13.6 million metric tons a year, about 20 percent of global output, according to the industry body that certifies the commodity. But only half of that is sold as sustainable oil. That’s because it’s more expensive to produce and hardly anyone is willing to pay a premium, says Sime Darby Plantation Bhd., the top planter by acreage.