When we talk about traceability, we refer to the implementation of processes or procedures that make it possible to be certain of the origin and the route, in a production cycle, through which a raw material or product passes.
Therefore, traceability systems make it possible to ensure the origin of a product or raw material. In the case of palm oil, traceability systems based on satellite monitoring and analysis are relevant because they constitute a technical basis to ensure that the crop was established and developed from the beginning, free of deforestation; it can be demonstrated that there was no substitution of forests for the establishment of the palm plantation. According to the robustness of the system, it is even possible to have more details about the crop itself, such as genetic materials grown, agronomic practices that were used for specific crops, among others.
This allows actors in the palm oil agro-industry value chain to be certain that the cultivation process has been clean and is complying with sustainable practices. Traceability can go from cultivation to the use of the raw material in final products.
Guatemala, as the sixth largest palm oil producing country in the world, has systematically developed the implementation of good practices in palm oil production in line with sustainability. Among these, the "National Satellite Monitoring System for the Sustainable Development of Palm Oil" stands out, a programme promoted by GREPALMAThe system, a non-profit association of small, medium and large palm oil producers in Guatemala, brings together efforts for sustainable palm cultivation as a viable option to generate development opportunities. This system is implemented in conjunction with Satelligencea Dutch organisation specialising in near real-time satellite monitoring, which has built a robust satellite monitoring platform covering 33% of the country, although palm cultivation occupies only 1.6% of the national territory.
This system, which makes use of technology and artificial intelligence, monitors land use changes in the study areas with potential palm cultivation development to ensure that there is no forest clearance where new areas of palm cultivation are being established or will be established.
Likewise, before establishing a new plantation, Guatemalan producers are required to carry out what are known as "studies of new plantations -NPPs-"; in these studies, a detailed analysis is made of the areas to be cultivated in order to identify areas that may be of high conservation value and ensure their protection, as well as to ensure that the crop is not established in fragile areas, among other factors. These studies are verified by third parties to ensure that deforestation does not occur and thus guarantee the sustainability of the crop.
Opportunities in the European market
The European market has strict environmental objectives, one of which is to become one of the carbon neutral regions by 2050 by sourcing raw materials free of deforestation and ensuring a sustainable supply chain.
Approximately 70% of Guatemala's palm oil is currently certified by international sustainability standards such as RSPO* and ISCC* and is the country's main export product to the EU, so complying with ensuring zero deforestation gives Guatemala a relevant competitive advantage in maintaining trade with the EU.
Europe requires almost 3 million metric tonnes of crude palm oil for food and feed production, as well as for the production of oleochemicals and biofuels. This consumption is expected to grow due to demand behaviour, but traceability must be ensured.
Article written by Karen Rosales, executive director of GREPALMA
*RSPO certification ensures commitment to and compliance with sustainability requirements in the production or handling of palm oil.
*The International Sustainability and Carbon Certification (ISCC) is an international certification programme for biomass and bioenergy production that focuses on land use sustainability, traceability and greenhouse gas verification along the entire supply chain.
