THE CHALLENGES IN THE PALM OIL INDUSTRY
Oil palm product is a lucrative international commodity and the product derivatives are used in many countries around the world...
The oil palm industry is one of the most significant areas that makes up the Far East Asia and West Africa industrial sector and has had a remarkable impact in their economy. The oil palm industry also has an inducing effect on food and cosmetics industries as it provides raw materials, food and various ingredients for the industries.
Oil palm product is a lucrative international commodity and the product derivatives are used in many countries around the world. Virtually all food and cosmetics industries around the world have palm oil in their products. However, the oil palm industry can be seen as that which has contributed to the diverse facets of international commerce and industries. Apart from food and cosmetics companies, other companies such as logistics, energy, textile, chemical and most agro industries depend on palm oil products and its derivatives in one way or the other for their operations.
In order for the palm oil industry to survive, all the production and supply chain has to be handled in a sustainable way. If a sustainable action that will really appease all the stakeholders in the industry is not taken, there might be a collapse of the industry. The fall of the industry will affect economies in the Far East Asia and other countries that produce palm oil, leading to high crime rate and poverty. Also, the collapse of this industry is going to lead to skyrocketing of different commodities in the market globally.
WHY THE NEED FOR SUSTAINABLE DEVELOPMENT IN OIL PALM INDUSTRY
In recent times, there have been controversies surrounding the growth and expansion of the palm oil industry. The major players in the palm oil industry believe in the possibility of attaining a sustainable palm oil, while the environmentalists have a contrary view to this development. In fact, the major issues that have raised concern among environmentalists are the replacement of rain forest with palm oil plantation and the incessant dumping of influent from the palm oil mills. However, issues of social justice and other environmental issues associated with palm oil production have also been surfacing in recent environmental newsletters and journals.
Palm oil plantation is seen by the dealers in the palm oil industry as substitute for rainforest since the vegetation is just like the forest, even there is also a compromising position in the European Union Commission in this direction. However, despite the position of the palm oil dealers on deforestation and palm oil, there is an acknowledgement of some of the claims by the environmental activists.
From the viewpoint of the environmentalists, the downstream production of palm oil involves a lot of activities that either destroys or poses danger to the ecosystem. Firstly, the clearing of forest for palm oil estates leads to the extinction of many wild animals, since the only habitat for some of those animals is the forest. Some of the animals that could even survive in palm oil plantation are hunted by the plantation owners as they are seen as the plantation pests.
Another downstream activity that is wildly condemned is the post-clearing burning. Usually, after the clearing of shrubs and falling of trees, the fallen trees and shrubs are set on fire in order to create space for planting. However, forest is known to be playing a very important role in the absorption of carbon dioxide in the atmosphere because it is rich in plants. So, when the forest is destroyed, carbon dioxide is gradually released to the atmosphere. Further burning of the cleared forest releases more pollution to the atmosphere in a faster rate, which could be hazardous to both human and animals.
The processing of the fresh fruit bunches of palm oil to crude palm oil involves a lot of activities that could cause pollution to the environment if not properly managed. During the milling of palm oil fruits, large amount of...
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Research question: What is the sustainable production process that will be accepted by all stakeholder in the palm oil industry?