InfoSAWIT, JAKARTA – The growing trend of “palm oil-free” labeling in global markets is increasingly being questioned, as studies suggest it may not align with environmental protection goals and could even worsen deforestation.
Citing an article by Douglas Sheil, a professor at Wageningen University published in The Conversation, palm oil remains one of the most efficient vegetable oils in terms of land use.
Research from the IUCN Oil Crop Task Force and industry analyses show that palm oil can produce four to ten times more oil per hectare compared to alternatives such as soybean or sunflower.
“Replacing palm oil may actually increase land demand and drive deforestation elsewhere,” Sheil noted.
He warned that boycotting palm oil without a data-driven approach could lead to “displaced deforestation,” where land conversion pressure shifts to other crops.
According to him, sustainability is not determined solely by the commodity itself, but by how it is managed.
“The boundary between ‘good’ and ‘bad’ agriculture rarely lies in the crop, but in how the system is implemented,” he explained.
An analysis of three major Western supermarket chains in 2025 found that palm oil was explicitly labeled in only about 8% of products. However, up to 40% were estimated to contain hidden palm-derived ingredients under generic terms such as “emulsifier,” creating what he described as a “transparency fog.”
The European Union’s Deforestation Regulation (EUDR) aims to address these issues by requiring commodities such as palm oil, soy, cocoa, and coffee to be deforestation-free.
However, implementation challenges remain, including delays and differing standards across countries.
For producing countries like Indonesia, fairness is a key concern. Satellite-based mapping systems used in EUDR are still considered weak, with misclassification risks reaching up to 63% in Indonesia’s agroforestry systems.
This could disadvantage smallholders who practice sustainable farming but face barriers in accessing European markets.
High costs for traceability and mapping also pose challenges, especially as smallholders account for around 40% of Indonesia’s palm oil production.
If unresolved, this could lead to “leakage,” where trade shifts to less regulated markets, reducing the effectiveness of global deforestation policies.
Sheil emphasized that EUDR’s success depends on more inclusive and collaborative reforms, involving producer countries and improving mapping accuracy and transparency.
“Sustainability should not become a burden solely for small producers, but a shared responsibility,” he concluded. (T2)
