Oil palm fruit being processed. The fruit is crushed to extract the oil, which then can be used for food or biodiesel. However, there are social and environmental issues surrounding oil palm production, since the plantations often compete with native agriculture or rainforest, and palm oil grown for fuel takes up acreage that might otherwise be used for food crops. Because of the detrimental environmental impact of palm oil production, it is not considered to be a sustainable biofuel, and in fac