Palm oil is a controversial yet relatively new issue in Nicaragua. Palm oil is typically talked about in regards to South East Asia where the issue is not new at all. The industry has been booming there for the past 20 years but it is still in its infancy in Nicaragua. This was apparent in my google search alone. I struggled to find two or three decent articles about the palm oil industry in Nicaragua but came up with a dozen about the palm oil in South East Asia. I even used the databases on AU’s website and even they only came up with one result on the palm oil industry in Nicaragua, which wasn’t actually relevant.
The bottom line is that the palm oil industry is responsible for major deforestation in South East Asia which equates to loss of biodiversity and water pollution. The effects of the palm oil industry on Nicaragua’s rainforests and biodiversity are not fully understood because the industry is so new. One source that I looked pointed to Panama’s palm oil industry as an example of the industry’s potential for sustainability. Palm oil plantations in Panama are planted in old pastureland and banana plantation so they don’t require deforestation.
Palm oil can be used in both vegetable oil and biofuel production. Palm oil has the potential to bring prosperity and economic stimulus to Central and South American countries but it also has the potential to wreak environmental havoc. Clear cutting rainforest and replacing it with palm oil plantations reduces biodiversity and increases water pollution because of pesticides and other industrial chemicals.
The Makengue Project 