Many environmental organisations and conservationists have been warning us that eating foods and using biodiesel made from palm oil is having a direct effect upon and threatening the survival of that much loved primate the Orangutan.

So what's all the fuss about?

Environmentalists have generally been largely supportive of the adoption of biodiesel because, apart from being biodegradable, it gives off fewer emissions when used in our vehicles. Not all biodiesel fuel is the same however, some are better than others in the way they are produced and environmental organisations have begun to question oil palm cultivation especially, in recent years, how large areas of natural rainforest have been cleared to make way for oil palm plantations. It is argued that apart from the loss of forest ecosystems, oil palm cultivation has become a major polluter on a local level due to indiscriminate use of petroleum based pesticides and fertilizers. This has lead to soils becoming so polluted over time that many previously fertile areas have become wastelands.

What has given rise to this deforestation?

Western governments have largely embraced the need to cut emissions and have set aggressive targets encompassing the use of so called first generation Biofuels made from food crops. The transportation sector has been singled out due to the fact it is a major volume source of carbon emissions. It could be argued that this has contributed directly to the rapid development of the Biofuels industry and marketplace. Also the rise in the cost of crude oil to record levels by mid 2008 meant palm oil has become an increasingly important agricultural crop in tropical countries with Malaysia and Indonesia seeing the opportunity for increased exploitation. These two countries account now for around 85% of palm oil production across the world. This area of the world is also the natural habitat of Orang-utans and the increased deforestation is now a threat to their very existence.

But why is Palm Oil so important?

Quite simply oil palm is the most productive oil seed there is and it can produce over 10 times more crude oil per hectare than soybeans and over 20 times more than corn. Another factor making palm oil in increasing demand is apart from being used in Biodiesel production, it is also used as an ingredient in many other day to day household foodstuffs as well as cosmetics. Ironically, oil palm may be more ecologically friendly due its higher yield factor in theory requiring less land by a significant factor than traditional crops. Many environmental organisations, oil companies and western governments recognise this and are beginning to try to put the case to the local governments concerned.

But oil prices are going down now so will demand for palm oil drop?

Palm oil prices tend to move in step with the price of crude oil and during the second half of 2008 prices have fallen rapidly also as a result of the global recession demand for palm oil should slow down. Critically, does this mean we will see a slow down in the expansion of oil palm plantations? Supply and demand economics for palm oil suggest it should do, but the sceptics amongst us have maintained that oil palm development may in fact be a cover for something that is far more profitable - logging. In Indonesia millions of hectares of forest have been cleared for plantation development and plans are in place to double oil palm production over the next 15 to 20 years spilling over into Borneo. Logging is a much more profitable to both the logging companies and the local governments.

What of the Orangutans?

I'm not sure Orangutans understand the economics and politics in their region of the world. If they did then it is likely they would be putting pressure on the governments both locally and around the world to re-consider the plans they have for what is still the largest tropical rainforest in Asia. Perhaps the local agricultural ministers in question should look at the mounting pressure from the West, look to their conscience and re-evaluate all available information. Perhaps they would then realise that the long term survival of the regions biodiversity is not only crucial for local indigenous peoples but also our friendly Orangutans and who knows perhaps the very survival of our planet in the long term.