Fdb 5024 Global Food Management
Group Project: The Palm Oil Dilemma
CLO 1: Analyse issues in food systems from multiple disciplines and diverse perspectives.
CLO 2: Propose strategies to deal with current and emerging issues in food.
The demand for palm oil continues to rise globally. According to the United States Department of Agriculture, the global annual palm oil production stood at 73 million metric tons in the fiscal year of 2019/20 and it is expected to increase to 77 million metric tons in the fiscal year of 2020/21, almost double the 2007/08 statistics.
Palm oil represents the world’s most consumed vegetable oil, accounting for one-third of global consumption. India consumes the most, with 17 percent of the global total, followed by Indonesia, the EU, and China. Besides its usage as cooking oil, palm oil can also be found under different ingredient names in everything from cookies, bread, ice cream, soap, lipstick, and even eco-friendly biodiesel.
Because of the strong demand for palm oil, the cultivation of oil palms has expanded tremendously in recent decades. However, the expansion presents a dilemma, and it has drawn considerable criticism and debate among policymakers, scientists, and general consumers. Rainforest and biodiversity losses increased greenhouse gas emissions, and human rights violations are some of the adverse impacts of the expansion of oil palm plantations.
Indonesia and Malaysia, the world’s top producers of palm oil, are facing tremendous pressure from the tightening of regulations and threatening sales in the EU, their third-largest market. It is crucial for both countries to fight the negative sentiment and protect the reputation of the commodity, particularly its use in food products which accounts for 70 percent of palm oil’s use globally.
Assuming you and your group members are partners of a consultancy firm and the firm has been requested by the Council of Palm Oil Producing Countries (CPOPC) to submit a proposal to run an advocacy campaign for the European markets.
Please read the article using the link below for a better understanding of your role in this project.
The project is divided into 2 sections and the team is required to complete both sections.
- Section 1: The team is required to take a comprehensive review of the current practices, issues, and challenges faced by this commodity industry. In this review, the team is asked to:
- Discuss the supply and demand of this commodity, including a comparison with other competing oils;
- Examine the current practices, challenges, and criticism on palm oil production and consumption from the political, economic, social, health, and environmental perspective;
- Analyze the current practice of how palm oil is being marketed to consumers and how consumers perceive palm oil;
- Analyze governmental and non-governmental interventions in the production and marketing of this commodity.