Sustainable Palm Oil Supply Chains: Complexity, Custody and Contention

Demand for palm oil is strong. It and other products of the oil palm are pervasive in modern society. The sustainability of oil palm cultivation is, however, contested. Different interpretations of sustainability have created conflict at the point of production with perceived Western values conflicting with the perceived needs of palm oil producing countries. This paper contributes to the sustainable supply chain management literature by discussing how stakeholders, with differing objectives, influence behaviour along complex palm oil supply chains. Based on field observation and interviews with these key stakeholders, the paper considers economic, ethical and environmental aspects emerging from efforts to create sustainable palm oil supply chains. In particular, the paper looks at efforts to achieve traceability of supplies and the impacts of such efforts. Insights from this research will help raise awareness of the supply chain dynamics of the palm oil industry, the conflicting challenges faced by downstream buyers and upstream producers, and how well-meaning efforts to support socio-economic development potentially harms efforts to drive sustainable production of oil palm.