We’ve made a submission to the House of Representatives Standing Committee on Economics inquiry into proposed amendments to food labeling regulations.  The amendments would make it compulsory for products containing palm oil to say that they contain palm oil, as opposed to a general “vegetable oil”.

The production and consumption of palm oil involves costs that are not always incorporated into market prices, referred to by economists as “external costs” or “externalities”.  Examples of externalities associated with the production of palm oil include deforestation, reduction of wildlife habitat and health impacts associated with the consumption of saturated fats.

We welcome the move towards improved labeling.  Improved labeling allows consumers to make better purchasing decisions and enables producers to differentiate their products from those of their competitors.  We believe the amendments should be passed and urge the committee to look into extending labeling requirements to other types of vegetable oils, which can have similar externalities associated with their production.