Food Business Review

Solutions to Fats and Oils Supply Chain Difficulties

Food Business Review | Friday, May 26, 2023

Manufacturers seek a healthier, sustainable, reliable supply of fats and oils amidst supply chain difficulties.

Fats and oils provide sensory and quality aspects to snack and pastry goods. Consumer interest in clean labels, health and wellness, and sustainability influences the fats and oils market. Over half of customers regularly check the fats and oils in packaged items. Customers claim they are interested in fats and oils for health reasons, such as lowering their heart disease or cholesterol risk.

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

The amount of fat and kind of oil are crucial variables for most worldwide customers when deciding which packaged meals to purchase. In every nation surveyed, olive oil had the greatest influence on buying.

Global challenges: Overall utilization of soybean oil has increased, and from 2020 to 2021, usage in the food business increased by 7 percent. Notwithstanding the difficulties in the supply chain and the decreased exports from Russia and Ukraine, US soybean farmers are sustainably producing more soybeans per acre to fulfill the demand—growing the second-highest crop yield on record in 2021. US Soy is still well-equipped to offer enough food, fiber, and fuel to satisfy this increased demand that we predict in the future, despite supply chains continuing to change with the global market. According to research, emerging facilities might increase US soybean oil production by up to 4.9 billion pounds by the end of 2025.

Many worldwide challenges have significantly influenced the availability of fats and oils. The US is significantly reliant on foreign oil. Many canola, grapeseed, avocado, olive, palm, coconut, and sunflower oil buyers depend on imports. Since the pandemic began, a lot has changed concerning the worldwide supply chain for fats and oils. The industry felt the supply chain problems that everyone faced. The sector was operating well until the outbreak of the war with Ukraine and Russia. As these two nations provide 80 percent of the world's supply of sunflower oil, the whole sunflower market was flipped upside down.

Finding solutions: It is simple to take for granted the supply chain's resilience and the possibility of affordably gaining access to food. The interruptions in supply networks have exposed how stable or flimsy specific supply systems were. Emerging businesses keep lines of communication open to assist their clients in resolving supply chain difficulties. Thanks to flexible formulations and adjunctive labeling, customers can alter components without affecting the product's qualities. Customers may need to change oils when creating their snack and pastry choices due to current supply chain problems. Adjunctive labeling offers several options for oil constituents to account for all potential scenarios. Businesses are spending money on their supply chains and planning to prevent disruptions and handle them more effectively.

Long-term solutions: According to research, Americans are more conscious of sustainability promises. According to the study, 37 percent of respondents said they were more inclined to make a 6-point buy of packaged goods with a sustainability claim. The study included a new question asking consumers what kinds of sustainability promises they were interested in. Customers are more likely to choose products made ethically or sustainably based on US studies. Other promises included fair trade, decreased packaging, and resource conservation. RSPO-certified segregated palm oil and palm stearin, and palm olein products are also being added to North American portfolios by food companies. Companies are also investing in regenerative agriculture programs and supporting initiatives to improve soil health and water management in row crops like sunflowers. Cooking oils from palm olein and stearin are used in products like trans-fat-free margarine and shortening. Industry specialists have extensively mentioned their challenges with supply chain issues and are still determining how these will affect the market soon or in the long run. The food industry has struggled with supply chain issues for fats, oils, and downstream items. This means that some research and development work is devoted to finding temporary or permanent replacements for these ingredients. Due to the situation in Ukraine, the sunflower oil market especially needs more supply. Companies must ensure they can promptly provide their clients with all existing contracts.

Industry experts have talked extensively about the difficulties they are now having with their supply chains, and they are still determining how these concerns will affect the market in the short- or long term. Concerns about the supply chain for fats, oils, and downstream products have plagued the food business. Finding temporary or long-term substitutes for these substances requires considerable research and development. The market for sunflower oil, in particular, has yet to be severely undersupplied due to the situation in Ukraine. Businesses must ensure that their clients can quickly access all current contracts.

More in News

The culinary landscape has developed significantly in recent years, with a clear shift toward ingredients that provide both exceptional flavor and considerable nutritional benefits. In this changing environment, cold-pressed olive oil has become a fundamental component, evolving beyond its traditional uses as merely a finishing oil or salad dressing. It is now commonly used as a preferred cooking medium for various culinary applications. This shift is driven by a deeper understanding of its chemical properties, its performance when heated, and the increasing consumer demand for wholesome, minimally processed food products. The Science Behind the Sizzle: Why Cold-Pressed Olive Oil Excels in Cooking The very essence of cold-pressed olive oil lies in its extraction method. Unlike refined oils that undergo high-heat and chemical processing, cold pressing involves a mechanical process of crushing and pressing olives at low temperatures. This gentle approach is crucial for preserving the oil's intrinsic qualities – its vibrant flavor, rich aroma, and a treasure trove of beneficial compounds. These compounds, particularly polyphenols and antioxidants, are sensitive to heat and are retained mainly in the cold-pressed varieties, making them distinct from their refined counterparts. For a long time, there was a prevalent misconception that cold-pressed olive oil, especially extra virgin varieties, was unsuitable for cooking due to its perceived low smoke point. However, contemporary research and culinary practice have debunked this myth. The smoke point of quality cold-pressed olive oil typically ranges from 350°F to 410°F (176°C to 210°C), a range that comfortably accommodates most common cooking methods. This includes sautéing, shallow frying, baking, roasting, and even grilling. The key lies in understanding that the smoke point is influenced by factors such as the oil's acidity and the presence of impurities. High-quality cold-pressed olive oils, with their low acidity and superior purity, exhibit remarkable stability when heated, resisting oxidation and maintaining their beneficial properties even under sustained cooking temperatures. This stability is further bolstered by the oil's high monounsaturated fatty acid content and its natural antioxidants, which act as protective agents against degradation. Beyond Flavor: Health Benefits and Culinary Versatility The decision to cook with cold-pressed olive oil is often rooted in its compelling health benefits. It is a rich source of monounsaturated fats, predominantly oleic acid, which are widely recognized for their positive impact on cardiovascular health. These fats contribute to lowering levels of "bad" (LDL) cholesterol while supporting "good" (HDL) cholesterol. Beyond its healthy fat profile, cold-pressed olive oil is brimming with antioxidants, including polyphenols and Vitamin E. These potent compounds combat oxidative stress in the body, a process implicated in various chronic diseases and the aging process. The anti-inflammatory properties of certain compounds, such as oleocanthal, explicitly found in extra-virgin olive oil, further enhance its appeal as a healthful cooking choice. Incorporating cold-pressed olive oil into daily cooking can be a strategic dietary move to support overall well-being. From a culinary perspective, cooking with cold-pressed olive oil introduces a distinct dimension of flavor and aroma to dishes. Unlike neutral-tasting refined oils, cold-pressed olive oil carries the nuanced essence of the olives from which it was derived. Depending on the olive variety, ripeness at harvest, and regional factors, the flavor profile can range from buttery and mild to intensely fruity, peppery, or even herbaceous. While some of these delicate, volatile compounds may diminish slightly with prolonged heating, the underlying flavor characteristics and the oil's ability to enhance other ingredients largely persist. This inherent flavor enables a more complex and satisfying culinary experience, making it a versatile ingredient for a wide range of cuisines. It seamlessly integrates into Mediterranean dishes, where it is a foundational element, but also finds its place in contemporary fusion cooking, Asian stir-fries, and even in baking, where it can impart a subtle richness and moisture. The Growing Appetite: Market Trends and Consumer Demand The market for cooking cold-pressed olive oil products is experiencing robust growth, driven by an informed consumer base seeking natural, wholesome, and functional ingredients. This demand is further fueled by the growing popularity of diets that emphasize healthy fats and minimally processed foods. Consumers are becoming increasingly discerning, seeking transparency in sourcing and production methods. The appeal extends beyond seasoned cooks to a broader demographic keen on making healthier dietary choices without compromising on taste. This trend has led to an expansion in product offerings, with a greater variety of cold-pressed olive oils catering to different flavor preferences and culinary needs. Cooking oils have firmly embraced cold-pressed olive oil as a versatile and beneficial option. Its gentle extraction process ensures the preservation of its inherent nutritional value and distinctive flavor profile. Dispelling past misconceptions, its demonstrated stability at typical cooking temperatures, coupled with its remarkable health benefits rooted in monounsaturated fats and antioxidants, firmly establishes it as a superior choice for a wide array of culinary applications. As consumers continue to prioritize health and natural ingredients, the prominence of cold-pressed olive oil in the kitchen is set to grow even further, cementing its position as an indispensable component of contemporary healthy cooking. ...Read more
Today's vending machines —now sophisticated, robotic, and AI-driven kiosks —are pioneering a new frontier in automated retail. By seamlessly integrating into modern commercial and public spaces—from airports and corporate offices to shopping centers and hospitals—these systems are not just selling products; they are redefining operational efficiency, leveraging data for smarter sales, and meeting the overwhelming consumer demand for contactless, smart retail experiences. Impact on Operational Efficiency Robotic vending systems have emerged as a transformative force in commercial spaces, offering unmatched operational efficiency and cost optimization. One of their most compelling advantages lies in continuous, 24/7 operation with minimal overhead. Unlike traditional storefronts or staffed micro-markets, robotic kiosks function independently, making them ideal for locations that demand service beyond standard hours—such as airport terminals, transportation hubs, hospital waiting areas, and corporate campuses. These intelligent systems, including robotic kitchens and baristas, can deliver freshly prepared, high-quality food and beverages on demand, eliminating the need for extensive round-the-clock staffing. Equipped with IoT connectivity and AI-driven analytics, these systems also redefine inventory management and equipment reliability. Real-time monitoring allows operators to remotely track inventory levels, sales trends, and machine health from centralized dashboards. Automated logistics systems use predictive algorithms to anticipate demand, optimize restocking schedules, and minimize waste. Additionally, predictive maintenance capabilities enable early detection of mechanical issues, significantly reducing downtime and extending equipment lifespan. Collectively, these advancements translate into streamlined operations, enhanced reliability, and substantial cost savings for operators. Driving Data-Driven Sales and Smart Retail Evolution Beyond automation, robotic vending machines are redefining retail through data intelligence and customer-centric innovation. Each transaction and interaction generates valuable insights—ranging from purchase timing and product popularity by location to customer engagement patterns. These metrics empower operators to refine product assortments, adjust pricing dynamically, and tailor promotions to local demand. For example, AI-driven analytics can raise coffee prices during morning rush hours or identify underperforming products for replacement. Personalized recommendations based on purchase history further enhance user engagement and foster loyalty by offering targeted suggestions that increase transaction value. In today’s post-pandemic retail environment, the demand for contactless, hygienic, and smart experiences has become a priority. Modern robotic kiosks now integrate cashless payment systems—such as Apple Pay, Google Pay, and tap-to-pay cards—and touchless interfaces that allow customers to browse or order via mobile devices or QR codes. Manufacturers are advancing this evolution with specialized solutions, from fresh-food robots that prepare salads and pizzas to secure kiosks dispensing electronics, skincare products, and even prescription refills. Modular and scalable by design, these systems enable property owners to expand retail offerings efficiently without significant capital investment. Robotic vending is not replacing retail; it is augmenting and optimizing it, ensuring that commercial spaces remain profitable and ready to serve customers at the precise moment they need them. This new frontier of automated retail is here to stay, cementing the robotic vending machine's role as an indispensable component of the smart commercial ecosystem of tomorrow. ...Read more
Global demand for seafood is increasing, and suppliers are focusing on sustainability, quality, and efficiency through technological advancements that enhance sourcing, processing, and distribution. Blockchain Traceability Blockchain technology is revolutionizing the seafood sector by providing unmatched traceability and transparency across the supply chain. Blockchain enables customers to track the provenance, care, and caliber of seafood products with previously unheard-of precision by tracking every transaction and movement of seafood from the ocean to the plate on a decentralized ledger. In addition to improving food safety and preventing fraud, this encourages sustainable fishing practices by rewarding ethical fishing methods and lowering illicit, unreported, and unregulated (IUU) fishing. IoT Sensors and Smart Aquaculture The Internet of Things (IoT) revolutionizes aquaculture by enabling real-time monitoring and optimizing fish farms' water quality, feeding, and environmental conditions. IoT sensors collect data on parameters like water temperature, oxygen levels, and feed consumption, enabling farmers to make informed decisions and mitigate risks. This technology enhances productivity, minimizes resource waste, and ensures aquatic species' health and welfare, leading to more sustainable and efficient operations. AI-Powered Sorting and Grading Artificial intelligence and machine learning algorithms are transforming the seafood processing industry by automating the detection and classification of seafood based on size, weight, species, and quality. These systems accurately improve productivity, product quality, and customer satisfaction by sorting products based on image and sensor data, saving labor costs, minimizing errors, and optimizing yield. Autonomous Underwater Vehicles (AUVs) The source and harvest of seafood from ocean depths are being revolutionized by autonomous underwater vehicles (AUVs) outfitted with cameras and sensors. These uncrewed vehicles can quickly survey underwater terrain, locate good fishing spots, and determine the number of marine animals. AUVs ensure the long-term sustainability of seafood resources by promoting ecologically friendly and sustainable techniques and minimizing reliance on traditional methods. 3D Printing of Seafood Alternatives 3D printing technology revolutionizes the seafood industry by creating sustainable alternatives using plant-based ingredients or cell-cultured proteins. This technology can precisely layer and shape these ingredients into realistic seafood analogs, mimicking the taste, texture, and nutritional profile of traditional seafood products. This innovative approach could disrupt the industry and address overfishing and environmental degradation. Robotics in Seafood Processing Robotic automation is revolutionizing seafood processing by enabling tasks like filleting, shucking, and packaging to be performed quickly, precisely, and consistently. This replaces manual labor, reduces costs, and improves workplace safety. It also handles delicate seafood products with care, minimizing damage and waste.  ...Read more
The food service industry has a significant impact on the environment through its energy usage and waste production. Restaurants and other food establishments play a crucial role in promoting sustainability initiatives. Foodservice businesses have numerous opportunities to adopt eco-friendly practices that reduce environmental impact and promote sustainability. One key area is sustainable sourcing, prioritizing locally sourced, seasonal produce to cut transportation emissions and support local agriculture. Organic and fair-trade products enhance sustainability by encouraging ethical labor standards and responsible farming practices. Additionally, sourcing seafood from sustainable fisheries is essential to protecting marine ecosystems. Waste reduction and management are other crucial focuses. Businesses can minimize food waste by implementing precise inventory control, proper storage, and creative menu planning. Establishing composting and recycling programs and conducting regular waste audits helps identify and address inefficiencies. Conservation efforts should extend to energy and water usage by investing in energy-efficient equipment, such as LED lighting and Energy Star-certified appliances. Water-saving measures, including low-flow fixtures and leak management, further enhance resource efficiency while integrating renewable energy sources like solar power, which reduces dependence on fossil fuels. Sustainable packaging plays a significant role in minimizing waste. Reducing single-use plastics through reusable containers and utensils and selecting biodegradable and compostable packaging for takeout supports environmental goals. Additionally, limiting unnecessary packaging helps reduce overall waste generation. Employee engagement is vital to sustaining these efforts. Providing staff with sustainability training and incentivizing participation fosters a culture of environmental responsibility. Educating customers about sustainability initiatives can also drive broader awareness and adoption of eco-friendly practices. Sustainable sourcing extends beyond local procurement, encompassing regional and national partnerships that promote environmentally responsible agriculture while minimizing transportation impacts. A shift toward plant-based menu options can significantly reduce the environmental footprint associated with meat production, curbing greenhouse gas emissions and deforestation. Collaborating with farmers practicing regenerative agriculture enhances soil health, mitigates erosion, and aids in carbon sequestration, fostering a more resilient food system. Efficient waste reduction and management play a pivotal role in sustainability efforts. Implementing on-site composting systems diverts food waste from landfills and generates nutrient-rich soil for local gardens or farms. Exploring anaerobic digestion technologies can convert food waste into biogas, providing a renewable energy or transportation fuel source. Additionally, partnering with food recovery programs enables surplus food donation, supporting communities while minimizing waste. Energy and water conservation are essential for reducing operational footprints. Investing in renewable energy sources like solar panels and wind turbines decreases reliance on fossil fuels. Greywater recycling systems repurpose water from sinks and showers for irrigation and other non-potable uses, promoting resource efficiency. Integrating smart grid technologies further optimizes energy consumption, mitigating peak demand and enhancing overall sustainability. Sustainable packaging solutions are critical to reducing environmental impact. Adopting plant-based, biodegradable packaging materials such as sugarcane or bamboo aligns with eco-friendly practices. Reusable packaging programs for takeout and delivery encourage container returns, fostering circular economies. Collaborating with suppliers to develop innovative packaging further drives industry-wide sustainability efforts. Building a culture of sustainability within the workforce is vital to long-term success. Establishing employee-led sustainability committees empowers staff to lead initiatives and take ownership of environmental goals. Regular training sessions provide education on best practices while recognizing and rewarding sustainability champions, reinforcing commitment and motivating continuous improvement. Leveraging technology and innovation accelerates progress in sustainable operations. AI-powered tools can predict food demand, minimizing overstocking and waste. Blockchain technology enhances supply chain transparency, ensuring ingredient traceability and ethical sourcing. Immersive VR training offers engaging educational experiences, equipping employees with the skills to adopt sustainable practices effectively. ...Read more