Why are rainforests being converted for oil palm plantations?
The answer lies in the crop’s unparalleled productivity. Simply put, oil palm is the most productive oil seed in the world. A single hectare of oil palm may yield 5,000 kilograms of crude oil, or nearly 6,000 liters of crude. For comparison, soybeans and corn—crops often heralded as top biofuel sources—generate only 446 and 172 liters per hectare, respectively. Beyond biofuel, the crop is used for a myriad of purposes from an ingredient in food products to engine lubricants to a base for cosmetics. Palm oil is becoming an increasingly important agricultural product for tropical countries around the world, especially as crude oil prices top $70 a barrel. For example, in Indonesia, currently the world’s second largest producer of palm oil, oil-palm plantations covered 5.3 million hectares of the country in 2004, according to a report by Friends of the Earth-Netherlands. These plantations generated 11.4 million metric tons of crude palm oil with an export value of US$4.43 billion and brou
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