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‘They’d never do it’: Why food manufacturers won’t shoulder palm oil sustainability costs There is little chance of food manufacturers covering the costs of palm oil sustainability efforts, despite new research saying it would require just a 2% increase in prices, according to an industry expert. A recent report released by commodity risk analysis institution Chain Reaction Research revealed that palm oil-related sustainability efforts could be paid for by FMCG companies with a less than 2% increase in product prices – e.g. a US$0.06 increase on a US$3 chocolate bar. “The overall value generated [for products using palm oil] stood at US$68.5bn in 2019/2020 for the FMCG sector alone, whereas the annual costs of producing ‘sustainable’ palm oil have been calculated to be just some US$6bn per year,” ​said the report authors.

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