The impact of palm oil production on the ecosystems and indigenous peoples of Brazil

Overview

Palm oil is the most commonly used vegetable oil on the market. It is seen on the ingredient lists of many household items. It has several uses in industries such as food, detergents, cosmetics, and recently in biofuel (Benezoli, Imbuzeiro, Cuadra, et al., 2021). The production of this versatile commodity is rising in response to its high yields, low cost, and demand (Petrenko, Paltseva, & Searle, 2016). Suitable plantation areas can be found in sufficiently moist countries with lowlands in tropical climates (Abubakar, & Ishak., 2022). This lucrative crop is an attractive investment for developing countries since it has potential opportunities to enhance economic growth and alleviate poverty.

While palm oil could have potentially positive benefits, there are concerns about this crop's environmental and social aspects. The rise in palm oil production has contributed to the loss of biodiversity, deforestation, and increased greenhouse gas emissions (Sundaraja, Hine, & Lykins., 2020) Ecosystem services are not valued economically. The production practices can increase economic growth, but at the same time, forests provide many ecosystem services. Humans and non-humans who depend on forest resources can suffer (Meijaard, Abram, & Wells et al., 2013). Indonesia and Malaysia produce 85% to 90% of palm oil production. (Abubakar, & Ishak., 2022). This agribusiness is expanding in places like the Brazilian Amazon, which is on the trajectory of becoming a large-scale palm oil producer (Castellanos-Navarrete, de Castro, & Pacheco., 2021). This study examines the impact of palm oil production on the ecological and social aspects as Brazil pushes into a lucrative palm oil trade.

Where does palm oil come from?

Palm oil is derived from oil palms native to West African forests that originally grew alongside farms and supported the economies of local villages (Abubakar, & Ishak., 2022). The government and private companies expanded these smallholder crops from Africa by cultivating the planting method into a more efficient monoculture form (Abubakar, & Ishak., 2022).

Why get oil from palms?

Palm oil is essential for the world’s food, cosmetics, cleaners, plastics, chemicals, and fuels (Abubakar, & Ishak., 2022). It has gained so much popularity that it has now surpassed all the other edible oils and is now the most glocally consumed vegetable oil (Abubakar, & Ishak., 2022). There is a high demand for palm oil in the food and chemical industry, and it is gaining popularity as a biofuel, promoting it as a renewable resource (Colchester, & Chao., 2011).

Why is it Controversial?

The palm oil crop is paradoxically promoted by governments who declare it a renewable resource to reach their climate change mitigation efforts, despite plantation expansion being far from green (Colchester, & Chao., 2011). As we look at regions such as Indonesia and Malaysia we can begin to understand the effects leading to deforestation, wildfires, water degradation, economic ventures, land acquisition, and loss of culture

Impacts of the palm oil industry

Environmental

Deforestation
Forest fires
Climate change

Sociological

Economic ventures
Land acquisition
culture disruption

Brief Description

The Roundtable on Sustainable Palm Oil (RSPO) is a plan by large industries and conservation groups aim to reform palm oil production sustainably (Colchester, Jiwan, Andiko, Sirait, Firdaus, Surambo., & Pane., 2006). This was created because of the significant effect of production on the environment and its inhabitants. As we look at regions such as Indonesia and Malaysia as well as other producers, we can begin to understand how deforestation, wildfires, water degradation, economic ventures, land acquisition, and culture play into the importance of how other countries such as Latin America can begin to adapt or avoid issues. It is essential to understand how our Amazon Rainforest is the lungs of the world. As we push this lucrative trade, we degrade our earth even further. Forest fires are the leading cause of deforestation which can cause significant health impacts to local communities, and this is not represented in the economic realm. Water use in the plantations and the contaminants that run into waterways play a big part in how palm oil interacts with its surrounding environment. Understanding how big corporations take hold of smallholders' rights for their beneficial endeavors by using strategic schemes. Generations of traditional properties are being taken away with no real answer and no power to fight. All these factors play a crucial role in understanding how this palm oil production has a large impact on communities and how this can further escalate to our largest rainforest in Brazil.

Framework

Why I picked this framework

This framework for this research proposal is a conceptual framework of palm oil industry sustainability, which was developed by Ng, Bahri, Syah, Mori, and Hashim( Figure 1). This framework expands the idea of the triple bottom line. The triple bottom line is a business matrix incorporating social well-being, environmental health, and economics. This is explained through the three P’s, which are profit (economic), people (social), and planet (environment). These areas are looked at since there is an increasing expansion in the palm oil industry (Figure 1) (Ng, Bahri, Syah, Mori, & Hashim., 2013). Sustainability has gained much attention from governmental and non-governmental stakeholders (Ng et al., 2013). The increase in demand for food and energy pushes palm oil production. Brazil has already entered the palm oil industry and plans to expand into one of the largest sectors. However, from the perspectives of other countries, this industry is unsustainable (Castellanos-Navarrete et al. 2021).

Triple bottom line in response to palm oil in Brazil

Challenges (economics):

In Brazil right now, 73% of the oil palm industry is large-scale, and small-scale owners own the rest (Castellanos-Navarrete et al., 2021). Large scale is when a large amount of rainforest is converted for plantations owned by large companies. Small-scale holders are single-family-owned plantations with migrants or local owners.
Downstream potential means there could be potential to expand more of the palm oil industry. Using this idea of downstream potential, we can see if Brazil will stick to one product or have multiple products associated with palm oil. This can also help understand if wages will be kept low for unskilled labor or teach skilled labor to create more out of the products. So this ties to sustainability by asking if the profit outweighs the concerns.

Concerns (social):

Social and cultural aspects of how the people impacted by the plantations view this expansion. This conceptual framework can help understand how communities' belief systems are viewed and how they could potentially change. Brazil, it is home to the Amazon rainforest, which has a lot of ties to Indigenous communities Castellanos-Navarrete et al., 2021).
Land loss is when people of the land have settled for generations and have rights to property and can be either schemed out of their land or taken without any power or information as to why it's happening. This framework can help understand how Brazil could be impacted and a sustainable approach to keep these practices from happening.
Worker’s rights and welfare is the next step in concerns because it analyzes how these communities' work could improve or decline depending on where their job status ends up. This can help Brazil lead to a sustainable welfare package that can help uplift the community.

Key Issues (environmental):

Plantation vs. rainforest has been shown to have drastic effects linked to deforestation. This framework provides an interesting perspective on how there is a more sustainable approach that drifts away from deforestation. The Amazon Rainforest is the largest rainforest on our globe. Brazil could reach its limits if the industry expands.
The conceptual framework on palm oil sustainability provides a climate change perspective. Brazil's largest rainforest will continue to be impacted as it progresses in this expansion. However, this conceptual framework helps understand if Brazil will view climate change as a factor in its expansion and how it will create a more sustainable plan.
Another issue with the palm oil industry is water pollution and degradation. Understanding that any big plantation is going to have an effect on the water sources. Water is used in the farming and manufacturing process. Water pollution can be drastic to communities and costly, so looking at an approach that can better provide a sustainable option is essential.

References:

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https://doi.org/10.46488/NEPT.2022.v21i05.004

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& Motoike, S. Y. (2021). Modeling oil palm crop for Brazilian climate conditions. Agricultural

Systems, 190. https://doi.org/10.1016/j.agsy.2021.103130

Castellanos-Navarrete, A., de Castro, F., & Pacheco, P. (2021). The impact of oil palm on rural

livelihoods and tropical forest landscapes in Latin America. Journal of Rural Studies, 81,

294–304. https://doi.org/10.1016/j.jrurstud.2020.10.047

Colchester, M. & Chao, S., (Ed.). (2011). Oil palm expansion in South East Asia: trends and implications

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& Mengersen, K. (2013). People’s Perceptions about the Importance of Forests on Borneo. PLoS

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https://doi.org/10.1016/j.envsci.2019.08.004

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