Oil Palm Industry Economic Journal Vol. 4 (1) March 2004 p. 22-31

Selling the Green Palm Oil Advantage?

Teoh Cheng Hai
Received:    Accepted:    Available Online:


Palm oil has many positive environment attributes; this paper discusses the green palm oil advantage (GPOA) and the prospects of using it as a marketing edge over competing edible oils. Compared with the major oilseed crops (soyabean, rapeseed and sunflower), oil palm is considered the most environmentally friendly with respect to land use efficiency and productivity, energy efficiency and inputs of fertilizers and pesticides and pollution potential. It contributes positively to climatic change through effective carbon sequestration and it is not genetically modified. When defining GPOA, due consideration must be given to the expectations of its stakeholders and how well they are met. At present, some major stakeholders are concerned over the potential linkage between forest destruction and loss of biodiversity with the expansion of the oil industry. As this concern could lead to consumer action that could undermine the competitive position of oil palm, it is vital that the industry engages the stakeholders concerned, to bring about a win-win resolution to this contentious issue and enhance the green palm oil advantage.

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