Iceland brings back palm oil as Ukraine war sends food prices higher

Iceland’s reversion to the use of palm oil is on a temporary basis and is done “with regret”.  The grocer has been a prominent campaigner against the use of palm oil, which is a contributor to deforestation.

Russia’s invasion of Ukraine has powered a 1,000% increase in the price of sunflower oil as both countries are big suppliers. Iceland’s decision came as the high cost of living – inflation was already spiralling up before the war – puts its customers’ spending power under pressure.

Iceland managing director Richard Walker wrote in a blog: “The only alternative to using palm oil under the current circumstances would simply be to clear our freezers and shelves of a wide range of staples including frozen chips and other potato products.”

He described the use of sustainable palm oil as “a last resort and as a strictly temporary measure” in a limited number of products.

Walker wrote: “I haven’t changed my mind about palm oil, which is why this is strictly a temporary move, and one that I would not countenance at all if I could see any viable alternative.

“This is a serious emergency and one that requires tough choices and compromises if we are to achieve our prime objective of continuing to feed the nation and of delivering affordable food to those on tight budgets, who will inevitably be worst affected by the unprecedented pressures now building up in our supply chains.”