ICYMI: ‘Price Premium’ for CSPO is Dead says POM

In a wide-ranging interview with Food Navigator, co-host of Palm Oil Monitor Khalil Hegarty posits that the likelihood of a ‘price premium’ for certified sustainable palm oil (CSPO) is dead.

Hegarty makes this reflection based on the realization that Western food manufacturers will not agree to cover the costs of palm oil sustainability efforts, even though according to Food Navigator it would cost less than 2% increase on final goods prices.

In the interview, Hegarty points out that “in theory this would sound great, but that in reality they would never do it.” He explains, “some 10 years ago, they were already talking about implementing a price premium on CSPO and the related products but the fact is that it has been 10 years and it still has not happened.”

Hegarty points out in the article that currently, the costs of sustainable certification are fully on the shoulders of the palm oil producers, including small farmers, and not food manufacturers. This was explained in more detail during a recent webinar discussing the positive benefits of Indonesia Sustainable Palm Oil (ISPO).

Read the full Food Navigator story including the comments from Khalil Hegarty here.