Just 5 percent, or two million tons, of the expected crop of 40 million tons of crude palm oil produced in 2009 is expected to be certified as sustainable this year, according to estimates by an environmental standards watchdog, the Roundtable on Sustainable Palm Oil.

But only a small percentage of this "green palm oil" has actually found buyers, mainly due to the premium attached, making it harder to keep illegally-grown palm oil out of chocolate bars, soaps and thousands of other products, Jutta Poetz, biodiversity coordinator at the RSPO Secretariat in Kuala Lumpur, said in an interview.

Why is palm oil so attractive to illegal operators?

Its combined value as a cash crop with high yield, high marketability, versatility and a promising future.

Where does illegal palm oil typically enter the supply chain?

At the level of the individual farmer. Legal and illegal fruit bunches are mixed, as illegal and legal plantings are often contiguous, or at least close to each other. The problem is exacerbated in areas where there are no proper boundary surveys.

How do registered companies get drawn in?

Mills require multiple permits to operate – almost all are owned by law-abiding companies. However, to be economically viable many of them process the fruits of other growers and farmers as well as their own. They cannot trace the origin of all the fruit they process.

So, at present, the global supply chain cannot exclude illegal palm oil?

There are still many uncertified mills accepting both legal and illegal crops.

And certified palm oil can't be segregated out to prove its provenance?

Commercial suppliers do not traditionally bother about the origins of the oil. Segregation means additional work, adding to the processing costs at each step in the chain. With the market's current unwillingness to buy certified oil, due to the premium attached, a further price increase due to segregation is out of the question.

Can the industry lead a crack down?

Palm oil is a commodity that pervades everyday life around the entire globe. The failure to address illegal activities is not based on apathy or fear, but by the realization that commitment by governments is also essential to making the problem go away.

So how can the problem be solved?

Support for certified palm oil is the best way to stop, or at least minimize, illegal activity. Once the majority of mills are certified, and do not accept illegal crops, entry into the supply chain will stop. As the volume of certified oil increases the cost of segregation drops. Illegal growers then either need to go illegal all the way, convert to legal activities or cease operation.

What is a realistic time frame for this?

We expect certification volume to increase next year. If the markets weigh in by providing a clear incentive for RSPO certification there will be a very different palm oil industry within 20 years.