While better managed plantation and oil palm smallholding serve as models of sustainable agriculture, in terms of economic performance as well as social and environmental responsibility, there is serious concern that not all palm oil is being produced sustainable at present.
Development of new plantation has result in the conversation of large areas of forests with high conservation value and has threatened the rich biodiversity in these ecosystems (RSPO, Round table on Sustainable Pal Oil) e.g. Burning for preparation of land for oil palm cultivation has contributed to the problems of forest fires in the late 1990s.
The Expansion of oil palm plantation has also given rise to social conflicts between the local communities and project in many instances.
Based on current trends, the oil palm industry is set to continue its in order to satisfy global demand. However, it is imperative that expansion must be done sustainable.
To ensure that, it is necessary to develop a globally acceptable definition of palm oil production and use as well as implement better management practices.
