Role of community citizen in palm oil producing nation
The role of a community citizen in a palm oil producing country is very important. A community citizen will have two main roles. The first is to ensure that the people benefit from the output of palm oil and the second is to ensure that there are no adverse effects on the environment during palm oil production. This role requires the citizen to work together with palm oil producers to ensure that the population is educated about the best ways to protect the environment while producing palm. The community citizen is also tasked with working with government to ensure that proper regulations regarding the environment and benefits to the population are enacted as well as ensuring that they are adhered to by the producers. The role of the community citizen is therefore very important in ensuring that the population is able to benefit from the production of palm oil as well as ensuring that the environment is not destroyed by the production activities.
In many palm oil producing regions, large-scale producers who employ local people manage the production. In some areas, small-scale production also takes place. This means that the palm oil production provides revenues for the local economies. This provides the governments with revenue needed to develop their economies. However, the benefits to the local communities in the areas where production actually takes place are not that clear. Large companies are responsible for the production of a large percentage of the world’s palm oil. This means that when they invest in an area, locals may be forced out in order to create space for the commercial farms. Although compensation takes place, it is usually not enough to ensure that the lives of people moved are improved. The industry also means that large areas are under palm tree cultivation reducing the acreage under food crops. People living in such areas therefore face higher food prices (Partanen, Paloheimo, and Waris, 2014).
Finally, the production of palm oil requires a refining process to get the final product. In many cases, the areas producing the raw oil do not have the refining capabilities. This means that the product is sold raw, which fetches a lower price as compared to the refined product. This means that the people producing the product especially at a small scale are not able to get the full benefits of production. The price increases by several factors after refining and this means that mainly only rich people who are able to refine the product at an industrial scale earn the most revenues. Small scale palm oil producers however remain poor because of the low prices of the raw materials. This means that the citizens of palm oil producing nations are many times not able to benefit directly from the production.
Global demand for palm oil
The high demand for palm oil can be explained by palm oil’s qualities as well as a wide variety of uses. For instance, palm oil is an ingredient in soaps as well as in many food products, skin products, candles and cosmetic and personal care products. Palm oil is also increasingly being used as a fuel because of its high calorific value. Scientists have been able to come up with alternatives to palm oil in many cases. For instance, when the British explored Africa, palm oil was very valuable as a lubricant for machines. However, synthetic lubricants based on fossil fuels have largely replaced palm oil as a lubricant. Coconut oil and other vegetable derived oils such as sunflower oil and corn oil find use in replacing palm oil as cooking oil. However, the specific qualities of palm oil such as it being semi-liquid at room temperature make it attractive for many uses (Partanen, Paloheimo, and Waris, 2014).The relatively low cost of production also means that it is favored as compared to alternatives that are more expensive to produce (Jansen, 2012).
Global palm oil production
Numerous regions around the world produce palm oil. Currently, Malaysia and Indonesia are the world leaders in production. Global estimates indicate that both countries export at over $40 billion annually of the product to other nations. In Malaysia, data indicates that in 2014 over 5 million hectares of palm oil plantations (The Business Year, 2017). This figure is set to have increased in recent years as global demand for the product continues to increase. In addition, many African countries also have palm oil production as well as many countries in the Americas.
The wide variety of areas supplying palm oil means that supply within the global market remains stable. This is always an attractive option for the users of the product as it ensures that prices remain constant. This is mainly attributable to the fact that fluctuations in global supply may have an impact on the products price. Currently, palm oil also finds use in the production of bio-diesel. Bio-diesel is seen as a cleaner fuel when compared with fossil-based diesel. As a fuel, there are alternatives to palm oil such as corn-based bio-diesel. However, the same problems facing palm oil production for fuel also face these alternatives. This means that palm oil is favored because of its lower costs as well as its higher energy density when compared to the alternatives (Partanen, Paloheimo, and Waris, 2014).
Alternatives to palm oil
Currently, there are alternatives to palm oil. Many of these alternatives are also plant-derived oils such as coconut oil. However, palm oil retains a high demand for use in various soaps as well as food products. Unfortunately, the high demand for palm oil has led to the destruction of forest cover in favor of palm oil cultivation. This reduces the bio-diversity of affected areas as palm tree monoculture takes over. Apart from the environmental effects, areas with high palm tree cultivation suffer, as not many other food crops can be grown. This results in food insecurity as food products require importation at higher costs. These costs transfer directly to consumers, hence, overall raised food prices.
However, scientists are looking at alternative ways of cultivation to increase productivity and reduce environmental impact. Research has been carried out to come up with palm tree varieties that are more adaptable to new regions; which promotes the growth of these varieties in areas that were not traditionally associated with palm oil production. Research is also being carried out to come up with more efficient refining and purification process to reduce wastage. Synthetic alternatives to palm oil have already replaced palm oil in some of its earlier uses such as in lubrication and in manufacture of soap products.
Reference List
The Business Year. 2017. Growth Industry[online] Available at: https://www.thebusinessyear.com/malaysia-2016/growth-industry/review [Accessed 12 Jan. 2017].
Jansen, R. A. 2012. Second generation biofuels and biomass: Essential guide for investors, scientists and decision makers. Weinheim: Wiley-VCH.
Partanen, R., Paloheimo, H. and Waris, H., 2014. The World After Cheap Oil. New York: Routledge.
