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When ‘oils ain’t oils’ on the supermarket shelf:

Many products containing palm oil are labelled as 'vegetable oil' under loose Australian regulations.
By Motherpedia
Date: May 22 2013
Editor Rating:
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Unclear labelling of products containing palm oil is not allowing consumers to make informed purchasing decisions according to consumer advocacy group CHOICE.

Palm oil is the most consumed edible oil in the world, accounting for 33% of total production in 2009. It’s cheap, versatile, grows quickly and keeps products on the shelf for longer. 130,000 tonnes of palm oil is imported into Australia annually, equivalent to 52 Olympic size swimming pools.

But production of palm oil has mostly been at the expense of clearing large areas of tropical forests and other eco systems with high conservation values resulting in destruction of habitat for some species (such as the orangutans pictured), soil erosion, soil, air and water pollution and climate change.

“Unfortunately only 14% of palm oil produced is sustainable, and deforestation is resulting in catastrophic environmental damage,” says CHOICE spokesperson Tom Godfrey.

“Additionally, it has a saturated fat content of 51%, which fares poorly in comparison to other vegetable oils such as canola, sunflower and olive.”

Mr Godfrey said that around 50% of packaged products on supermarket shelves contain palm oil.

“From chips to shampoo to muesli bars, palm oil is present – but you’d never know it because Australian regulators allow it to be labeled as vegetable oil,” he says.

Food Standards Australia and New Zealand (FSANZ) require only three vegetable oils to be specificaly labelled: peanut oil, sesame oil and soy bean oil as many people suffer allergies from them.

“CHOICE believes that for consumers to make an informed decision to avoid palm oil should they wish to, access to accurate labelling is vital. For a product with such high levels of saturated fat, we think it is important to clearly and specifically label, rather than leave it up to the consumer to decipher fat levels on the nutritional panel,” says Mr Godfrey.

CHOICE says that leaders in the mainstream grocery market, including Arnott’s, Coca Cola ( including SPC Ardmona), Goodman Fielder and Nestlé, all use palm oil but label it vegetable oil. In store-branded goods, Aldi labels palm oil as vegetable oil, while Coles and Woolworths both specifically identify it. 

The use of palm oil in products for children is also now widespread. Woolworths recently released organic Mini Macro products sold in the health food aisle, containing palm oil. Woolworth’s claims palm oil ‘tastes better’ and is more widely available than organic oils. Aldi uses palm oil in products for children, including potato chips which it recommends as a part of its balanced lunch box campaign.  

International palm oil labelling standards serve overseas consumers better than Australians. The Food Information Regulation published by the EU, will require the type of vegetable oil used in food, such as palm oil, to be stated by 2014. The US and Canada also require palm oil to be labelled.

CHOICE tips for identifying palm oil

1.  Check the nutritional panel for the proportions of saturated to unsaturated fats.

2.  Note that if vegetable oil is listed and there is a high saturated fat content, it means the product probably contains palm oil.

3.  Be aware that when you’re purchasing processed products there is a chance it may contain palm oil.

4.  If you have doubts about ‘vegetable oil’ labelling contact the manufacturers directly.

Further information

See Auckland Zoo's guide to buying palm-free oil.

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