Here is a table I synthesised to make everything a lot more clearer for all you reader out there!! It took me a very long time to read and digest all the articles and then organise them into some sort of comprehendible format, so please appreciate it!! :-) Feel free to comment on this post if you would like any further information on any of the points raised!!
BENEFITS | COSTS | |
 Social | o Provides employment for local communities · Few other economic options for locals eking a living off rubber cultivation, subsistence rice farming, and fruit gardens | o Small plantation owners commonly become completely dependant on the large agricultural firms that dominate the palm oil industry · Eager community members acquire 2-3ha of land, from large firms and borrow money (approx $3000-6000) to buy seedlings and fertilizers. However, the oil palm does not bare fruit for 7 years and therefore locals have a low level of income. · This combined with the large start-up costs and high interest payments of approximately 30% virtually ensures that small holders will be perpetually indebted to the oil palm company. · Dr Lisa Curran who has carried out a number of studies into the impact of palm oil in Borneo suggests that this has profound psychological impact on communities. |
 Economic | o Higher yields than other crops leading to increased profits: · 2.8 tons per hectare, on average. · Seven times soybean yield o Palm oil has the ability to generate much needed foreign exchange · Increasing the value of the currency · Encouraging foreign direct investment (FDI) o The industry is labour-intensive and can provide employment opportunities for locals who may have lost their jobs in diminishing sectors. o Crude palm oil is a strategic commodity that is the most widely traded edible oil, accounting for more than half of foreign trade in edible oils. In turn creating huge potential for economic growth within host countries · Versatile nature of palm oil makes it practically attractive to food processors · A decade ago, palm oil generated more than $2.1 billion in export revenues for Indonesia and more than $3.8 billion for Malaysia, these figures have hugely risen since then | o Unnecessary expenditure in the instance of food shortages that require the import of food. · The attraction of palm oil has not only led to extensive deforestation but also has provoked the conversion of land from producing food crops to producing energy crops, in some cases leading to food shortages · Imported food from other regions tends to be far more expensive than local produce. · Puts food security under severe threat o Host countries could not benefit from the revenue generated from the palm oil if it leaves the country · If governments do not implement tight regulations and keep the large agricultural firms under a close watch, revenue may disappear out of the country to another, through foreign owners or affiliation the company may have. · Host countries experience all the negatives impacts of palm oil and reap little benefits. |
 Environmental | o The use of palm oil as bioenergy is generally regarded as environmentally friendly · Saves fossil raw materials, since it substitutes fossil energy sources. | The majority of negative environmental factors occur as a consequence of the deforestation palm oil plantations cause. o Shifts in biodiversity: · Sumatra: Less than 10% of birds and mammals found in primary forests live in plantations · Thailand: Only 41 out of 108 birds of the near by rainforest inhabit plantations o Contributes to Sumatran and Bornean Orangutan Extinction: · Orangutans depend on tropical forests for food and nesting sites · Degraded habitats lead to Orangutans migrating to less suitable areas. As a result the death rate increases and the birth rate falls o Land use change contributes to climate change in a number of ways. · Most simply virgin forests sequester large volumes of CO2. Deforestation leads to less trees standing, therefore reducing the earth natural ability to sequester CO2. · Oil palm plantation store significantly less carbon than forest areas prior to conversion. · Slash and burn, is commonly used to convert rainforest into fields suitable for palm oil plantations. Through the act of burning, high volumes of CO2 are released into the atmosphere, once again contributing to climate change. · As locals protest, against the destruction of virgin forests, large numbers of South East Asia peatlands are being drained to convert into plantations. Peatlands emit CH4 and sequester carbon. Once drained, the carbon stored within the peatlands becomes oxidized and is released into the atmosphere adding further to climate change. In addition to this, drained peatlands are highly flammable due to the high volume of partially decomposed matter it consists of. If fires break out, just like the slash and burn technique, an even greater volume of greenhouse gases is released into the atmosphere. · Draining peatland hugely increases the fire risk. If forest fires transpire, further damage would occur to ecosystems and through combustion further CO2 would be released. |
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